difference between a business proposal and a business plan

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Business Plan vs. Business Proposal

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 27, 2023 Updated on December 11, 2023

A business plan and a business proposal are similar documents. In fact, in some cases the terms can be used interchangeably, such as when both aim to attract investment. 

But generally speaking, a business proposal tends to have broader scope, and this handy guide lays out precisely how these two common terms differ. 

• What is a Business Plan?

A business plan is a detailed document laying out how the business will function and develop in its first few years. The key is the “plan” part of the name, as it will specify how you will launch, gain customers, operate, make money, and, with any luck, expand. 

Yet what many first-time business owners seem to forget is that a business plan is not a static document. The initial version is based largely on assumptions, supported by research. But as you run your business you’ll learn what works and what does not and make endless tweaks to your plan.

Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy. 

Components of a Business Plan

A business plan is generally much more detailed and broader than a business proposal, and has several elements :

• Executive Summary  
• Company Description/Overview
• Products or Services Offered 
• Market Analysis 
• Marketing and Sales Strategies
• Operations and Management  
• Financial Plan
• What is a Business Proposal?

A business proposal is created in connection to a specific business deal being offered by one party to another. As mentioned, when you take a business plan to an investor, you’re proposing a business relationship, so in this case a business plan and a business proposal are much the same.

But a business proposal could also be for others purposes, including:

• Bringing on a partner
• Proposing a management contract to a person you want to hire 
• Proposing a business relationship with a potential customer 
• Proposing a partnership with another company
• Suggesting a deal to a member of your board of directors

A business proposal may offer specific terms for the potential relationship, or it may be just about the benefits the relationship will bring, with terms to be negotiated later. Essentially, it’s a sales tool to get people or companies to do business with you in some way. 

Business proposals can be structured in various ways, but usually, they’ll include a summary of what your company can offer, a scope of the work to be done together, and sometimes, a price quote or a proposed structure of the business relationship.

Clearly, a business plan and a business proposal are similar – and can even be one and the same. At the same time, they can also serve very different purposes. Unlike a business plan, a business proposal can have a variety of aims and thus does not have a “one size fits all” structure. 

Whichever one you need, be sure to take your time with the research and writing so your business has the best chance for success. 

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Business Plan vs. Business Proposal: Everything You Need to Know

“Ok, so you sell things.”

Well, honestly, I wasn’t surprised or peeved at the half-baked knowledge of my friend’s father when he made a snap judgment and conveniently labeled my marketing profession as sales.

After all, this wasn’t my first time when someone tagged me as a salesperson. So, I took a deep breath and explained to him how sales are different from marketing.

We, humans, dwell in a herd mentality and hone our word skills from our surroundings. Sometimes, we are simply careless, sometimes oblivious, but most of the time, we actually don’t know that the word has a different meaning.

This can be ignored in a casual conversation, but using the wrong words in a business space can change the implied meaning and lead to miscommunication. For example, cost vs. price , digitization vs. digitalization , warranty vs. guarantee , machine learning vs. artificial intelligence , etc.

“Don’t use words too big for the subject. Don’t say ‘infinitely’ when you mean ‘very’; otherwise you’ll have no word left when you want to talk about something really infinite.” – C. S. Lewis

This Process Street guest post untangles the confusion between two crucial terms – business plan and business proposal. These are used interchangeably in the business world, but their meaning and application are pretty different.

Words are the building blocks of communication. There is a French phrase for using the right word – le mot juste .

Let us strive for le mot juste !

Hop on and be a part of this fantabulous journey.

What is a business plan?

What is a business proposal, business plan vs. business proposal: what are the differences.

• Bonus: How to make ‘wow’ business plans and business proposals?

Winding-up: Key takeaways

Here we go!

A business plan is a formal guide that acts as a blueprint, deciphering every root and branch to make a business successful. It is a written document that provides insights to internal and external stakeholders on business vision, goals, and strategies to achieve those goals.

“Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones and have a strategy in place to set yourself up for success.” – Yogi Berra

A business plan, at its core, is an explanation of the below questions –

• Who are we?
• What are our offerings?
• Who are our customers?
• Who are the competitors?
• What is our competitive advantage?
• What are the business projections?
• What is the roadmap to achieve the goals – marketing, operations, research and development, manufacturing, and financial plans?
• What are the funding/investment requirements?
• What is the return on investment?

Why do you need a business plan?

A business plan is not a bag of puffery statements. It is a document with factual information necessary for the survival of a business. You can create a business plan with the right tools or opt for a good business coach to get you started.

Let’s see what Tim Berry , business plan expert, founder and chairman of Palo Alto Softwar and bplans.com , has to say on business plans.

“What I love most about business plans is the business planning: like walking, it’s constant correction and review and revision. Planning, done right, is steering a business, managing growth, aiming the business towards the right future.” – Tim Berry ,  Small Business Trends

According to a study done by Palo Alto Software, those who create business plans double their chances to succeed in business .

Let us get down to brass tacks and understand why a business plan is super-duper important.

Record and present business information The primary intent of a business plan is to record and communicate information. It must document the business goals and the methods to attain those goals in a structured manner. It keeps businesses on track with their objectives.

A blueprint for seeking business investment ️ Whether you are a fledgling start-up or an established business seeking expansion or diversification, writing a winning business plan acts as a magnet to attract investors. It builds confidence and trust among investors about the lucrativeness of a business idea.

Lay down the right path ✔️ Not everything discussed verbally at an ideation stage transforms into reality in a pragmatic environment. Jotting down a business plan differentiates achievable from impracticable based on market dynamics, opportunities and threats, and company’s strengths and weaknesses. It sets the right track for business growth.

Establish short-term and long-term goals A business plan sets down short-term and long-term goals and the direction to accomplish them, right from baby steps to giant leaps. It becomes a basis to revisit the goals from time-to-time and make iterations depending on the present scenario.

“Any business plan won’t survive its first encounter with reality. The reality will always be different. It will never be the plan.” – Jeff Bezos, CEO of Amazon

Get clarity on your business A frequent question that pops-up in business discussions is: “Are we doing it right?”

A well-articulated business plan brings insightful knowledge on each aspect of a business – from what it has to offer to how to market the offerings.

Make informed decisions A business plan is a reality check to track what is being fruitful and what is causing hindrance. It paves the way to make a business sustainable.

Predict future financial performance Financial projection is the spotlight of a business plan. It’s the carrot that captivates the eyeballs and tickles investors to fund a new business.

A promising business plan talks about the company’s future financial performance – expenditure, profit, revenue, etc.

Explore new business opportunities A business plan is a flexible document that enables learning on the go. It bolsters research and infuses businesses with new and more feasible business opportunities. It gives organizations a fresh outlook and ushers them to be a howling success.

How to prepare for a business plan

Now that we have answered the ‘what’ and ‘why’ of a business plan, let us move forward to solve the next riddle – how do you prepare it?

Identify your company’s vision, mission, and values Start by answering and figuring out your business personality:

• What do you desire to be?
• How do you want to be perceived?
• What values put your business in motion?

This is your organization’s compass that acts as a foundation for the succeeding steps.

Know your target audience ‍ Dig deep into:

• Whom are you going to cater to?
• What is your target market?
• What is the size and potential of the target market?
• What are the needs of a prospective customer?
• How are the needs addressed presently?

Learn market trends Identifying market trends keeps businesses ahead of the game. Analysis of industry data leads to business growth and profitability in the long run.

Weigh in the impact of unforeseen circumstances From financial turbulence to natural calamities and pandemics – a lot can go wrong in the future and leave a business shaking. Expect the unexpected and gird your loins for these testing times.

How to write a business plan

Creating a winning business plan increases the chances of success and spurs investors to fund your business.

According to a study published in Small Business Economics , entrepreneurs that create a plan are 152% more likely to start their business and appoint a registered agent and 129% more likely to push forward with their business beyond the initial start-up phase and grow it.

Here are the key components of an excellent business plan:

Executive summary First impression is the last impression!

An executive summary is a crucial part of this document. It provides the essence of the whole plan:

• Company details;
• Size and scope of business opportunity;
• A description of your offerings and how it will solve the problem;
• Growth projection;
• Financial requirements.

It should be informative and able to spark readers’ interest to know more about the business plan.

Overview of the business This section lists down information on:

• Your business;
• Your target market;
• Description of your products/services;
• Why and how your offerings are a great fit for prospective customers;
• Your capabilities to handle the demands;
• Your value proposition and competitive advantage.

…and all other related details.

Market analysis and strategies Put forth a strong case built on the solid rock of data analysis and statistics – present data on target market size, industry trends, sales forecasts, and marketing strategy.

Operating plan The operating plan highlights the operational requirements for the smooth functioning of a business. It includes facilities, supply chain management, inventory, manufacturing, shipment, logistics, staff management – everything under the sun that covers capital and expense (CapEx) requirements.

Growth plan This section answers the question: “Where do you see the business going in the next few years?” It provides visibility to investors on the milestones and how you will make money in near future.

Marketing plan Thee marketing plan section describes how to market the offerings to create and fulfill customers’ needs (who are the customers, product positioning, pricing policy, and promotional strategies?)

Management plan This section outlines how your organization is structured and basically how strong you are together. It describes the skills, background, and responsibilities of the management team. It builds conviction that the business is in good hands and has a proficient human capital.

Financial plan and projections This is the part where numbers become the king.

It draws up deets on inflow and outflow of money, sales forecast, profit and loss statement, balance sheet, cash flow statement, and budget expense. It discloses and forecasts the company’s financial goals, profitability model, and charts a course for the coming years.

Conclusion and appendix Conclude the business plan by succinctly bringing out the key pointers – the business’s vision, mission, goals, strengths, and growth trajectory. Make it compelling and to-the-point. Add relevant appendices to strengthen your business plan.

Pro tip: Use an all-inclusive ready-made business plan template document and Process Street ‘s business plan workflow to create unbeatable business plans.

Business Plan Workflow

Click here to access the Business Plan Checklist!

Types of business plans

There are varying types of business plans depending on the purpose and usage:

• Business plan for start-ups A winning start-up business plan can be a game-changer to attract funding from investors. It should weave all key components to make it a promising investment – company overview, products/services, estimated costs, market evaluation, competition insights, risk analysis, cash flow projections, marketing strategies, and the management team’s strengths.
• Strategic business plan It lays down the details of a company’s strategies to fulfill its goals. It outlines the company’s vision, mission, strategy, and goals, the driving force for success, and the timelines.
• Internal business plan This plan moves the needle and steers focus on in-house planning and growth. It ensures that everyone grasps the company’s overall plan for growth. It prepares organizations to move forward by identifying and removing any blockages and assess and revise the strategies when required.
• Operations business plan It is an internal plan that maps out the nitty-gritties of a company’s operations plans and activities.
• Development business plan This is a development or an expansion plan of a business. It is used for both internal and external purposes. An external growth plan is written to attract investment from external sources. An internal development plan counts on its own business capabilities, revenue, and resources. It works as a guide to provide the right directions.
• Feasibility business plan A company scouts out a feasibility study when it plans to foray into a new venture, new product, or a new market. It articulates: How well will the product or service perform? Is the business promising? What is the expected return on investment (ROI)?
• What-if business plan At a point where you face unordinary conditions, you need a variation on the existing plan. A what-if business plan arranges to fall back on a contingency plan when things go sideways. For example, an unexpected surge in demand, new competition, drop in market size, etc.

A business proposal is the mantra that draws you closer to win a customer or bag a project.

Generally, it is a formal response to a Request for Proposal (RFP) sent by a prospective client looking for the right solution to their problems. It explains the particulars of a seller’s offerings and convinces the buyer that the proposed solution is the gateway to their business’s success and productivity.

“And, after all, winning business is what writing proposals is all about.” ― Tom Sant, Persuasive Business Proposals: Writing to Win More Customers, Clients, and Contracts

A business proposal comprises of four main points :

• What are the challenges of prospective clients?
• How can our solution solve their problems?
• Why should they choose us over others?
• What are the best pricing options available?

Why do you need a business proposal?

A business proposal is a testimony in itself that asserts, “I am the best you can get.”

Here are the reasons why you should and must make a business proposal :

• Create or leverage a business opportunity The prime motive is to win, win, and win! It is a medium to encash a business opportunity by putting forward an I-can’t-say-no-to-this proposal.
• Stand out from the competition It persuades the prospects that you are way ahead of other rivals in the industry in terms of the value you offer.

How to prepare for a business proposal

The heart of preparedness is research and further research. After all, the devil is in the details.

Talk to prospective customers, visit their website(s), read published articles, and be a know-it-all for your prospective clients.

Sort out the ‘who’ First and foremost, dig every possible information about the client:

• Who is the client (its vision, mission, and goals)?
• What does it produce?
• What are its key markets and target customers?
• What are its business growth plans?
• Which markets is it presently serving?
• Also, figure out the kingpins of a proposal approval process. This will help you to create a comprehensive proposal with all the necessary answers expected by the decision-makers.

Understand the challenges Find what’s bothering them and what is causing hindrance to their business success. Learn about their existing solution and its challenges.

Stitch the glitch and offer the best solution After a thorough review of all the points mentioned above, find the best solution to your prospective client’s problems.

List down key differentiators This will help you to beat the competition in the dust. It draws a comparison chart and puts you in a superior position.

According to Gray Mackenzie, founder of GuavaBox ,

“Prior to submitting a proposal, make sure you have clearly defined all the major points verbally with the potential customer. By discussing the scope, cost, timeline, and details prior to submitting a written proposal, you can uncover objections earlier in the process.” – Gray Mackenzie, 10 Sales Experts Share Their Best Business Proposal Tips

How to write a business proposal

Let’s get down to the fundamental elements that form a business proposal. Learn how to create a business proposal that stands out and close sales.

Title page/Cover page The name says it all.

Pretty easy-peasy thing to understand, right? After all, you have been creating the title pages since school days.

Still, make a note: Always write a gripping title that intrigues prospective clients’ interest and urges them to read on.

Other components that should be included on the title page are:

• Your company name and logo;
• Prospective customer’s name;
• Submission date.

Table of contents (TOC) As the name suggests, a TOC is a well-structured layout of the document. It helps to skim and scan and navigate speedily through different sections of a business proposal.

Executive summary It sets the tone for a proposal and makes the reader inquisitive about reading subsequent sections. It sums up the entire business proposal – the purpose of sharing the proposal and why and how your solution is the right fit for the prospective client. Leave no stone unturned to boast about your offerings in the executive summary.

Details of offerings This is an in-depth description of the products or services your company has to offer.

How will the offerings solve the client’s problems? This explains why your products/services are the right fit to address a prospective client’s needs and why it is a better alternative than the competition.

The methodology/implementation of offerings This section is a blanket explanation of how the promised deliverables will be executed. It provides step-by-step clarity on each action along with timelines. It gives the client peace of mind and builds trust and confidence in the offering.

Pricing, payment, and legal matters Here, you talk about the pricing structure, applicable taxes, payment schedule, cancellation policy, and how you plan to solve the legal matters (if any arise in the future).

Here are some tips for this section:

• Ensure that the pricing details are concise and complete.
• Providing a comparison chart with different pricing options helps to make decisions faster.
• Don’t go overboard with pricing, and also, don’t underrate yourself.
• Always refer to the RFP and verify if every request has been fulfilled.
• Separate out and create a new legal section if your business demands an extensive list of legal requirements.

Details about your company This is an exhaustive overview of your company. Don’t forget to add relevant customer testimonials, case studies, or success stories to build your case among prospective customers.

Signatures and Call to action This is the moment that gets butterflies in your stomach; the closure. This is the concluding part of a business proposal. Here (if all your prayers get answered), you and your client sign the proposal and secure the deal. Hurray!

Pro tip: Once you send the business proposal, don’t sit idle in your cocoon day-dreaming of winning the proposal. Always proactively do follow-ups with the prospective clients and clarify their doubts.

For start-ups or small businesses, drafting a business proposal can be an unnerving experience. They work fingers to the bone to write a perfect business proposal. Spending too much time on it might lead to missing the deadline and eventually losing out on a golden opportunity.

According to a report by Better Proposal , sending a business proposal within 24 hours increases the likelihood of winning the deal by 25%.

Here’s the secret sauce to speedily create flawless business proposals :

First, pick a professionally vetted and ready-to-use business proposal template and draft a business proposal like a cakewalk. Such as the Business Proposal Template included below.

Next, always use Process Street ‘s super-powered business proposal template checklist and ensure no step gets missed in the process.

Business Proposal Template Checklist

It even turns out a blessing for big businesses since they have to draft multiple proposals all the time. Templates and checklists save a lot of time, enhance productivity, and increase the chances of success.

Types of business proposals

Majorly, there are two types of business proposals:

Solicited business proposal Also known as an invited business proposal, it comes into play when a buyer, or a company, outlines its requirements and requests suppliers to present an offer. It can be a response to a public tender issued by big corporations or government agencies.

Alternatively, a solicited business proposal can also be submitted as a response to the RFP shared by a prospective client.

The difference between the two is that while the earlier one is open to all bidders, the latter’s scope is limited as it is shared with shortlisted suppliers.

Pro tip: Do a thorough check before submitting an invited business proposal. Missing out on-minute details can kick you out from their consideration list.

Unsolicited business proposal An uninvited or unsolicited business proposal is a proactive attempt to create a business opportunity. This proposal is sent to prospective clients without being asked.

The good news is, there are slim chances of your rival sending a business proposal simultaneously, so less or no competition.

The bad news is, it might breathe in the customer’s inbox for a few days and then, without being read, depart to the heavenly abode -the trash folder.

But still, like a cold call, it leaves some impression on prospective clients and shoots up the chances to cut a deal in the long run.

Pro tip: An unsolicited business proposal is mostly sent through emails. Make certain to write an attention-grabbing headline and a convincing explanation to draw attention.

Here’s a comparison chart that distinguishes between business plan and business proposal:

Bonus: How to make ‘wow’ business plans and business proposals

Here are the secret ingredients to make awesome and captivating business plans and proposals:

Follow the principle of KISS (Keep it simple, silly)

This is not the right place to brag about your vocabulary skills. You want the prospective customer to focus on reading rather than wasting time looking up for a word.

Always remember! Communication is the key.

So, go simple and ditch those heavy jargons.

Don’t wear-out the pupils of your prospects with long-winded documents. Capitalize on the multisensorial abilities of humans as well.

Visuals increase people’s desire to read content by 80%.

Leverage the power of visuals and make your document easily graspable by adding graphs, infographics, flowcharts, tables, images, and videos.

Add social proof

Do not forget to add positive feedback or customer testimonials. If similar projects have been delivered in the past, do add relevant links and case studies of that work. It helps to build trust and strengthen your case.

“Make sure you have great success stories that you can share with potential clients. At the end of the day, most, if not all, potential clients want to know you will provide value to them and generate positive ROI.” – Mathew Bivens, Podcast and marketing consultant,  10 Sales Experts Share Their Best Business Proposal Tips

Proofread ️

Ensure the document is free from grammar and spelling errors.

Follow brand guidelines

Your document should reflect your brand. Bring consistency in all your documents and design them as per the brand guidelines.

Use document builder tools ️

Time is money!

The likelihood of getting a ‘yes’ on your business plans and business proposals depends on how fast you can create a flawless document.

Empower your organization with a smart and all-in-one document builder tool like Revv – create, communicate, collaborate, and close your documents in no time.

Business plans and business proposals are two different worlds with distinct purposes and goals. But, both play a prime role in increasing the odds of business success.

People often get the wrong end of the stick and ask for a business plan when they mean business proposal or vice-versa.

But, we don’t need to worry about that since we are now clear on what is what.

Cheers to us!

P.S: Don’t forget to subscribe to the Process Street blog to get notified of our upcoming articles. We also have a podcast “Tech Out Loud” featuring content written by respected industry leaders such as Peep Laja , Sujan Patel , Tomasz Tunguz , and more!

What is your take on business plans and business proposals? Have you ever got your wires crossed with these two terminologies? Don’t forget to post your comments below.

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Molly Stovold

Hey, I'm Molly, Junior Content Writer at Process Street with a First-Class Honors Degree in Development Studies & Spanish. I love writing so much that I also have my own blog where I write about everything that interests me; from traveling solo to mindful living. Check it out at mollystovold.com .

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Business Plan vs. Business Proposal

The terms “business plan” and “business proposal” are sometimes used interchangeably, however, they are very different. The main difference between a business plan and a business proposal is that a business plan documents your growth strategy while a business proposal is a specific ask for someone to take an action you desire (e.g., buy your product/service, invest in your company, partner with you, etc.).

In this article, we will define a business plan and a business proposal and give you examples of when each is appropriate for you to use.  

What is a Business Plan?

Download our Ultimate Business Plan Template here

Business Plan Structure

Typically, the business plan structure contains the following 10 components:

• Executive Summary
• Business Description & Overview
• Market Research & Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Strategy & Plan
• Operations Plan
• Management Team
• Financial Projections & Plan

It is recommended that a business plan is updated annually to adjust for changes in the industry trends and the business itself.  

What is a Business Proposal?

In terms of what you are asking from them, it can be anything that involves funds and time on their end including cash investment, product development assistance, and even employees if they have applicable skill sets.  

Business Proposal Structure

An invited business proposal is written in response to an RFP. A request for proposal (RFP) is a document that invites potential suppliers to submit business proposals. How to write a business proposal depends on the format requested and the questions included in the RFP.

The following are the components that usually make up a business proposal:

• Brief description of your company’s services/products as the proposed solution to the goals of the RFP
• Reiteration of the scope of the particular project
• Responses to questions asked in the RFP
• Cost of the project, including drafting services, materials, tools, labor, delivery and other expenses

An unsolicited business proposal is essentially the same format, but it will solicit the client’s business while anticipating the clients’ concerns and issues. A business proposal is more of a marketing document than an offer because it attempts to persuade the potential client to do business by demonstrating your value proposition and a call to action.  

So, What’s the Difference Between a Business Proposal vs. a Business Plan?

In a business proposal, company representatives typically work with the customer to tailor a business proposition that is attractive to both parties. This usually comes in the form of a written document detailing the services and cost associated with fulfilling an offer or request but can also include electronic contracts.

In contrast, a business plan is a description of your company on the executive and operational levels aimed at investors for raising financial support or other stakeholders in order to facilitate long-term growth. For example, an investor will want to know about how different departments within your business interact with one another, while somebody who will be implementing your product probably only needs more limited information such as design specs because they are not going into production themselves.

A business proposal may provide you with more details of the project, but it does not include information about your company’s operations or future plans.  

Examples of Business Plans vs. Business Proposals

• When you give a potential investor your business plan which includes all sorts of information about how we will achieve your goals together as well as the amount of money it’s going to take. The business proposal is for them to write you a check in return for interest/principal payments or a percentage of your company.
• You might be getting partners involved in your business who will help with product development and distribution. You are offering them a business proposal to work together. However, they may request to see your business plan to better understand your goals, potential profitability, and how you plan to reach these goals before deciding to work with you.
• Your existing business has been so successful that you decide to outsource the social media marketing efforts to a freelancer to free up more of your time. The freelancer would provide a business proposal stating their terms and conditions along with the agreed-upon pay arrangement for their services. This change in organizational structure may be noted in your business plan to demonstrate expansion and financial stability to continue growth.
• In your business plan , one of your goals is to grow your client base by 5% each month. You identify potential clients in need of your services or products and send an unsolicited business proposal to demonstrate how your products or services can benefit them in order to develop a new prospective client list.

The business plan is a roadmap for your company’s present and future, while the business proposal has to do with what you are asking someone else for money.  Applying this difference into practice can be difficult at times because business plans are often marketed as business proposals. However, it is important to be able to identify the difference between a business plan and business proposal in order to maximize their effectiveness and importance with potential investors or partners.

How to Finish Your Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Other Helpful Business Plan Articles & Templates

Difference Between a Business Plan and a Business Proposal

Table of contents

It’s natural to get confused between a business proposal and a business plan if you are planning to turn your idea into reality. While business proposals and plans may sound similar on the surface, they have differences — such as distinct purposes and formats. 

A business plan describes your business goals, strategies, and financial projections. A business proposal, on the other hand, proposes a specific solution to a problem or opportunity and helps you persuade the relevant stakeholder to invest in your business. 

However, writing a business proposal or a business plan can be challenging, especially if you are confused about their purpose. In this blog, we will explain the difference between a business plan and a business proposal and its major components.

Business Plan

A business plan tells the investors how you plan to ship your product to enough people to clock revenue. It’s about the strategies that will make you the first buck. 

A business plan keeps your team on the same page — you can use it as a guiding light. It can help you track the progress of your business, give you a roadmap, and help you make decisions about your business’s future.

Plus, it can be helpful when it comes to pitching your business idea to a third party, for example, when seeking a loan.

Components of a Business Plan

A business plan is majorly divided into three sections, which include an executive summary, a sales and marketing strategy, and a financial plan. 

An executive summary is a brief, clear, and compelling overview of your business. It is usually the first section of the document, and it contains the most important information, such as your strengths. 

These can be further broken down into the following sections:

• Description of products and services, including mission, vision, and objectives of the business
• Target market
• Competitive advantage
• Industry and Competitor Analysis
• Marketing strategy
• Operating plan
• Team structure and qualifications
• Internal business analysis
• Management introduction 
• Financial analysis
• Cash flow statement or sales forecast
• Break-even analysis

Business Proposal

A business proposal is a separate written document that outlines a specific business opportunity, project, or idea and presents it to potential clients. 

It intends to persuade them to take action, such as accepting a business deal or entering into a partnership, thereby helping you get new customers or partners. 

A business proposal should be customized to the needs and interests of the receiver. A generic proposal will rarely help you meet your business goals. 

At the same time, ensure your proposal is well-organized, persuasive, and creative. Check out these free business proposal templates to impress your clients. 

Solicited and Unsolicited Business Proposals

Proposals are solicited from you, or you send them on your initiative. 

You write a solicited proposal in response to a prospect’s or customer’s request for a product. They may ask you verbally, or they may issue a written request for proposals (RFP). A solicited business proposal contains a detailed description of the product, service, or solution that you offer to solve the customer's problem or need. It’s generally easier to write because you know what the customer wants or expects. 

But if you’re writing the proposal on your own, which is the case with unsolicited business proposals, then you’re convincing the receiver to work with you or buy from you. Such proposals are often challenging to write because you have to convince them they have a problem and you have a solution.

Components of a Business Proposal

The following are the key components of a business proposal :

• Executive summary
• Introduction
• Problem statement
• Scope of work
• Benefits of Return on Investment (ROI)
• Call to Action (CTA)

Business Plan vs. Business Proposal

While a business plan outlines your goals and explains how you will achieve them, a proposal sells your product to potential customers.

In the following table, we have summarized the main differences between a business plan and a business proposal:

Streamline the proposal creation process

To wrap up, a business proposal is a document that pitches your products or services to a potential client, while a business plan outlines your goals, strategies, and financial projections for your business. 

With business management software like Cone, you can easily streamline and automate your proposal creation while ensuring your proposals are bespoke and customized. Sign up for free and experience the seamless proposal creation process for yourself. While you’re at it, check out other business proposals and management resources we have for you.

Business Plan vs Proposal: An In-Depth Comparison

Explore the distinguishing factors and circumstances that make a Business Plan or Business Proposal more fitting for driving success and growth in your enterprise. Gain insights into the purpose, audience, and strategic value of each document, and learn when it’s best to utilize a Business Plan or pitch with a Business Proposal.

Table of Contents

What is the Main Difference Between a Business Plan and a Business Proposal?

The main difference between a Business Plan and a Business Proposal is that a business plan is a formal document that outlines the company’s goals, strategies, market analysis, financial needs, and projections for the future, aimed at providing a roadmap for the business’s success and often used to secure funding or guide the management team. On the other hand, a business proposal is a tailored document created to pitch a specific product, service, or solution to a potential client or partner, detailing how the business can fulfill a particular need or solve a specific problem for the recipient, often with the goal of initiating a transaction or project.

Understanding Business Plans and Business Proposals

A Business Plan is a comprehensive document that outlines a company’s objectives, strategies, market analysis, financial forecasts, and operational structures. It primarily serves as an internal roadmap for the company’s strategic direction and helps to attract investors by showcasing the company’s potential for growth and profit. Business plans are often developed during the foundational stages of a company and updated periodically to guide the company through different stages of growth.

A Business Proposal , on the other hand, is a targeted pitch provided to a specific client or partner to convince them to do business with you. Unlike a business plan, a business proposal is not a broad overview of the entire company. Instead, it is a customized suggestion that outlines how your business can solve a particular problem or meet a specific need of the prospective client. The proposal highlights the benefits of selecting your company’s products or services and typically includes pricing, terms, and conditions for a potential engagement or project.

Key Differences between a Business Plan and a Business Proposal

• Purpose : A business plan is primarily used for strategic planning and securing investment, while a business proposal is aimed at winning a specific contract or project.
• Audience : The audience for a business plan is typically potential investors, stakeholders, or company management. On the other hand, the business proposal is directed towards a specific client or partner.
• Focus : A business plan covers the entire company’s goals and operations, whereas a business proposal targets a specific offering for the client.
• Details : While business plans include detailed financial projections and market analysis, business proposals focus on how your company can meet the client’s needs and the costs associated with your proposition.
• Frequency : Business plans are created infrequently, often at startup or significant growth stages, while business proposals are generated as needed when pursuing new business opportunities.
• Structure : Business plans have a standard structure, including an executive summary, company overview, products/services, and financials, whereas proposals are tailored to the client’s request.
• Standardization : Business plans tend to follow a similar format from one to the next, while proposals are highly customized to align with the potential client’s requirements.
• Duration : The time horizon in a business plan can span several years, reflecting long-term planning, but a business proposal typically concerns the timeframe for a specific project or service offering.

Key Similarities between a Business Plan and a Business Proposal

• Strategic Elements : Both documents outline strategic approaches, whether for the company as a whole or a specific project.
• Research : Thorough market research is essential in creating either a business plan or a business proposal to ensure feasibility and competitiveness .
• Objective Setting : Each document includes clear objectives that the company wishes to achieve, be it long-term company goals or objectives of a contract.
• Persuasive Nature : Both are meant to be persuasive documents that convince the reader to invest in the company or to hire the company for services/products.
• Professional Presentation : A business plan and a business proposal should both be presented in a professional manner, well-organized and free of errors, to make the best impression.
• Financial Information : Financial aspects are crucial in both; while a business plan may have more comprehensive financial projections, a proposal should still outline costs and pricing models.
• Action Plan : Action steps or milestones are outlined in both to guide the intended strategy into practical steps or to give the prospective client a clear timeline for project completion.

Advantages of a Business Plan Over a Business Proposal

• Clarity and focus : A business plan provides a clear roadmap for your company , detailing your objectives, strategies, and financial projections. It enables you to stay focused on your long-term goals and the steps required to reach them.
• Risk assessment : It allows for a thorough risk assessment, helping you foresee potential challenges and devise strategies to mitigate them.
• Investor attraction : A well-crafted business plan is essential for attracting investors and lenders as it showcases the viability and profitability of your business idea.
• Strategic planning : The business plan acts as a strategic planning tool, helping you to align your short-term and long-term goals with the overall vision of the business.
• Operational guidance : It provides detailed operational guidance, outlining day-to-day activities, management responsibilities, and the organizational structure.
• Performance tracking : By setting benchmarks and performance metrics, a business plan makes it easier to track progress and measure success over time.
• Market analysis : A business plan includes an extensive market analysis, offering insights into your target market, competition, and market trends, which are crucial for making informed decisions.

Disadvantages of a Business Plan Compared to a Business Proposal

• Inflexibility : A business plan can be quite rigid, with a focus on long-term strategies and projections that might not adapt well to rapid changes in the market.
• Time-consuming : Preparing a comprehensive business plan requires a significant amount of time and effort, potentially diverting resources from immediate business opportunities.
• Outdated information : A business plan might quickly become outdated if the market or the company’s circumstances change, requiring frequent revisions.
• Cost : The production of a business plan can be costly, especially if it necessitates the expertise of consultants or outside advisers.
• Overemphasis on planning : There’s a risk of over-planning and under-executing, where too much time is spent on creating the perfect business plan instead of taking action.
• Complexity : A business plan’s complexity might be intimidating or overwhelming for small business owners who may prefer the simplicity and directness of a business proposal.
• Less tailored : While a business proposal is often customized to the needs and interests of a specific client or investor, a business plan is a broader document that may not address specific concerns or questions from potential stakeholders.

Advantages of a Business Proposal Over a Business Plan

• Focus on Specificity : A business proposal is usually tailored to a specific client or project, which means it’s highly targeted and practical. This specificity allows the business to directly address the client’s needs and provide a customized solution that a general business plan cannot offer.
• Rapid Execution : Proposals tend to be shorter and more concise, which allows for quicker evaluation and a faster start on the project. Businesses can get to work immediately after the proposal is accepted, shortening the time from planning to action.
• Persuasive Element : A business proposal aims to persuade a particular client or investor to buy into the idea, product, or service. This persuasive nature means that proposals often focus on benefits and competitive advantages, potentially leading to a higher success rate in securing funding or partnership.
• Adaptability : Since a proposal is typically for a particular client or project, it can be easily adjusted for different opportunities or audiences without reworking an entire business plan. This adaptability makes it more versatile in responding to market changes.
• Ease of Preparation : A business proposal can be less daunting to create than a full-blown business plan as it generally does not require as much market analysis and financial forecasting. It allows the business to focus on the immediate opportunity rather than extensive strategic planning.
• Potential for Immediate Feedback : When you present a business proposal, you often do so in a setting that allows for immediate questions and feedback. This gives you the chance to quickly address concerns, modify your offer, and improve the chances of an agreement.
• Enhanced Relationship Building : Crafting a proposal requires understanding the client’s needs and objectives deeply, often leading to stronger client-business relationships. This rapport can be beneficial for both future business and referrals.

Disadvantages of a Business Proposal When Compared to a Business Plan

• Lack of Long-term Vision : A business proposal is often focused on the immediate project and may not outline the long-term strategic direction of the company as comprehensively as a business plan would.
• Limited Scope : Proposals generally address specific aspects of a business’s operations rather than providing a complete picture. This narrow focus might overlook broader opportunities or challenges that a business plan would typically account for.
• Missed Detail : While business proposals are succinct, the brevity can sometimes result in the omission of important details that would be standard in a business plan, such as thorough market analysis or full financial projections.
• Potential Dependency : If a company relies too much on individual proposals for direction, it might find itself without a cohesive strategy which a business plan is designed to provide. This can lead to a reactive rather than proactive business approach.
• Risk of Assuming Knowledge : Proposals may assume that the reader has a certain level of understanding about the company or product, which can be a risky assumption if the reader is new to the business or its offerings.
• Need for Customization : Each business proposal needs to be customized for its intended audience, which can be resource-intensive when dealing with multiple prospects or regular tender submissions.
• Limited Investor Appeal : Investors often prefer to understand the comprehensive strategy and the broader financial implications of a business, something a focused business proposal may fail to communicate in comparison to a detailed business plan.

Situations When a Business Plan Is Preferable to a Business Proposal

• Establishing Clear Direction : When a new business is just starting out, laying out a comprehensive business plan is crucial for establishing a clear direction and objectives for the business. It serves as a roadmap for where the owners want to take the company and how they plan to get there.
• Securing Funding from Investors : A business plan is generally required for entrepreneurs seeking investment or loans. It presents detailed financial projections, market analysis, and business strategies that are essential to convince investors or banks to finance the venture.
• Long-term Strategic Planning : For setting long-term goals and defining the vision of the business, a business plan is more appropriate because it takes a broader view of the business’s place in the market and its growth strategy over the coming years.
• Developing Comprehensive Financial Projections : A business plan includes detailed financial forecasts that cover multiple years. This level of detail is necessary for stakeholders to understand the financial trajectory and potential of the company .

Situations When a Business Proposal Is Preferable to a Business Plan

• Responding to Specific Client Requests : A business proposal is tailored to the needs and specifications of a potential client or partner. When a business wants to offer solutions to another company’s problem, a proposal is best suited for outlining how it will meet those specific needs.
• Competitive Bidding Situations : When entering a bid to win a contract, a business proposal is more advantageous as it focuses on why the business is the best fit for the project, detailing its approach, unique benefits, and value proposition.
• Establishing Partnership Agreements : If a company is looking to form a collaboration or partnership, a business proposal lays out the terms and benefits of the partnership, which is more specific than the broader scope of a business plan.
• Project-driven Opportunities : For businesses that operate on a project-by-project basis, such as construction or consulting, business proposals are the better tool. They provide prospective clients with a detailed breakdown of the objectives, strategies, and costs for each unique project.

What components should be included in a business plan?

• Executive Summary : An overview of the business and its strategy
• Company Description : Legal establishment, history, start-up plans, etc.
• Market Analysis : Industry, market and competitor research
• Organization and Management : Business and management structure
• Service or Product Line : Description of what you’re selling
• Marketing and Sales Strategies : How you’ll attract and retain customers
• Funding Request : Your current funding requirements
• Financial Projections : Balance sheets, cash flow statements, and income statement forecasts
• Appendix : An optional section that includes résumés, permits, and other legal documents

How often should a business plan be revised?

A business plan should be reviewed and revised at least annually, or more frequently if there are significant changes in the market, the business model, or if new challenges or opportunities arise .

In what scenarios is a business proposal unnecessary?

A business proposal may not be necessary when transactions are straightforward and do not require detailed explanations, such as standard retail sales or when there is already an established relationship with the client based on trust and familiarity.

Can a business proposal lead to a long-term relationship with a client?

Absolutely. If a proposal leads to a successful project and client satisfaction, it can serve as the foundation for a long-term business relationship and future projects or collaborations.

What is an unsolicited business proposal?

An unsolicited business proposal is one that is offered without an explicit request from the potential client. It often reflects the proposer’s initiative to identify potential needs of the recipient and offer solutions to unaddressed challenges.

How can you make a business proposal stand out?

To make a business proposal stand out, it should clearly articulate the unique value proposition, be tailored to the client’s specific needs, contain compelling and concise content, and demonstrate a deep understanding of the client’s industry and challenges.

Are there any legal considerations when drafting a business proposal?

Yes, a business proposal should ensure that all claims and statements are truthful and that no proprietary or confidential information is disclosed without permission. Additionally, the terms and conditions should be clearly outlined to avoid any misunderstandings, and if accepted, it can be the basis for a legally binding contract.

Business Plan vs Proposal Summary

The decision between a Business Plan and a Business Proposal hinges on the specific requirements, goals, and context of your enterprise. A Business Plan lays the foundation for your company’s long-term strategy, risk mitigation, and operational guidance, with an expansive view of the business’s aims and the means to attract investors. Conversely, a Business Proposal concentrates on the immediacy of client-specific projects, presenting a tailored solution with a persuasive edge to secure contracts and foster client relationships swiftly.

About The Author

Hidayat Rizvi

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Comparison Between Business Proposal and Business Plan

Conducting a comparison between business proposal and business plan enables you to highlight the differences between the two. 3 min read updated on February 01, 2023

Updated November 12, 2020:

Conducting a comparison between a business proposal and a business plan enables you to highlight the differences between the two. Business plans are documents detailing how owners want to set up their business, their goals and objectives, and the processes and methods required to achieve these goals.

Understanding the Features of a Business Plan

A business plan is a document that describes in detail how your business is set up, the vision of the company, and the methods and process for realizing business goals.

A comprehensive business plan should provide detail on your:

• Products and services.
• Business structure.
• Marketing strategy and market research.
• Budgetary expenses.
• Financial projections for the next five years.

Benefits of Drafting a Business Plan

Although developing a business plan takes a lot of research, planning, and calculation, it is well worth it. Drafting a business plan is a good idea for existing businesses and startups alike.

The reflection and time spent while creating your business plan will clarify your business ideas, providing you with insights into aspects of your business that you may not have considered, and help you strategize.

A well-written business plan is a blueprint for success because it outlines all the steps required to move your business from the ideation stage to reality.

However, not all business plans are meant to be executed. You could discover during the research stage that your business idea isn't right for implementation. Realizing this earlier on means you can save yourself time and money that you would have invested in a dead-end idea.

Before trying to raise funds for a business loan through an angel investor, incubator, or venture capitalist, ensure that you have thoroughly researched your business plan. Developing a well-researched business plan should take approximately six weeks, so writing your plan a day before meeting with a potential investor won't cut it.

Your business plan should serve two purposes:

• To provide suppliers and investors with information about the viability of a business.
• To keep an accurate record of business goals and the steps required to achieve them.

The following is a sample structure you can use to prepare your business plan:

• Executive Summary.
• Business Description.
• Market Analysis & Strategies.
• Design and Development Plan.
• Management and Organization.
• Service/Product Line.
• Sales and Marketing.
• Funding Requests.
• Financial Projection.

What is a Business Proposal?

Business proposals are documents proposing a business arrangement between you and another enterprise. The two main categories are:

• Non-invited.

When large corporations or the government want to purchase products or services from private suppliers, they usually post a public tender inviting contractors to submit a bid. The winning bid will be selected from those submitted by interested contractors.

Some organizations may also send RFPs (Request for Proposals) to select businesses that they are considering as potential suppliers. In this instance, you will compete against a handful of pre-selected contractors. Usually, the client provides a Bidding document stipulating the categories of information to be detailed as well as the style and type of proposal they expect from interested contractors.

If the Bidding document is not available, it is up to the contractors to decide what style of the proposal to present.

Companies that respond to a call for tender or an RFP are competing with other enterprises similar to theirs. As such, they must present themselves in the best possible light to win the bid.

Non-invited Proposal

Unlike invited proposals where the clients expect a bid for a product or service they need, an uninvited proposal is sent to solicit a business arrangement. You may have an idea for a product or service that will be beneficial to Company X and you have the ability to provide the service/product.

To indicate your interest in undertaking business dealings with Company X, you send an uninvited proposal stating your intentions to form a business relationship.

The company may or may not be open to your proposal; however, if it is interested, you don't have to worry about competing with other bidders.

To boost your chances of your non-invited proposal being accepted, you must market both your concept and your company. You must convince the prospective client of the value of the product or service as well as the stability and credibility of your company.

If you need help with a comparison between a business proposal and business plan, you can post your legal need on the UpCounsel marketplace. UpCounsel accepts only the top percent of lawyers on its site. Lawyers on UpCounsel come from prestigious law schools like Yale Law and Harvard Law and usually have 14 years of legal experience, including work on behalf of or with companies like Airbnb, Menlo Ventures, and Google.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• Business Plan and Proposal
• Business Proposal Ideas
• Sample of a Good Business Plan
• Service Business Plan
• LLC Business Plan Template
• Creating a Business Plan
• Business Plan for New Company
• Details of a Business Plan
• Business Plan for Existing Company
• Business Contract Proposal

April 13, 2023

Can't find what you're looking for?

Difference Between Business Plan and Business Proposal

One of the most searched queries on Google is "business proposal vs business plan", and we are here to break the confusion.

What's Inside?

You are starting a new business, and you aren't sure what you need to do. You heard that you needed a business proposal and a business plan, but you weren't sure what's the difference between them.

You did some research and couldn't find what you are looking for... You decided to create both of them, but you need weeks to write and refine them.

Don't worry, we are here to remove this confusing process. Let's see what's the difference between them. You may, and probably do need both of them. But which one should be your priority?

The Difference Between a Business Plan and a Business Proposal

When you're starting a business, one of the most important things you'll need to do is create a business plan . This document will outline your company's goals and strategies for achieving them over the next five years.

A business proposal , on the other hand, is a sales document that you put together to pitch potential projects to clients. It's not the same as a business plan, and it usually includes cost quotes for potential projects.

The main difference between a business proposal and a business plan is that, while a business plan is informative, a business proposal is intended to showcase operations, goals, and potential.

Executive Summary

The executive summary of a business plan will include information about the company leadership structure or the introduction of management. Generally, business plans include an executive summary part while business plans don't.

We have seen some samples that use executive summaries but since the main goal is to close a deal. We suggest keeping them short and clean.

The business proposal format depends on whether the business is solicited or unsolicited . Details of products and services offered, the scope of work and responses to specific questions in an RFP are included in a business proposal.

A business plan documents the vision of a business and how it will be achieved. A business proposal offers comprehensive information for potential investors, suppliers, accountants, etc.

A proposal shows the external player what the company is all about and how it intends to carry out its project. Keep these differences in mind when you're putting together your next business presentation --you'll need to tailor your content accordingly!

What Are Business Plans?

A business plan is a document that outlines the business goals, strategies, and tactics a company will use to achieve those goals. The business plan also includes an overview of the company, its management team, the target market, and the products and services the company plans to offer.

It usually includes information about the company's products and services, target market, marketing plans , financial forecasts, and management team bios.

Here's a sample template to use while creating a detailed business plan.

What Is The Purpose of a Business Plan?

A business plan is a key document for any business. It lays out the goals and strategy of the business and helps to ensure that everyone involved in the business is on the same page. It can also be used as a tool to help secure funding from investors or banks.

A business plan is a document that outlines the strategy and goals of a company. It can be used as a planning tool , to track progress, or as a basis for making decisions . A well-written business plan provides a roadmap for the business , and it can help attract investors or partners.

There are many reasons to create a business plan. Some of the most common reasons include:

• To track progress - A business plan can help you track your progress and ensure that you are on track to achieve your goals.
• To make decisions - A business plan can provide guidance when making decisions about the future of your company.
• As a planning tool - A business plan can help you identify potential problems and solutions, and it can be used to forecast future growth.
• To attract investors or partners - A well-written business plan can help you attract investors or partners who share your vision for the company.

What is a business proposal?

A business proposal is a written document that offers a solution to a problem or a way to achieve a goal. It is often used to sell products or services to a potential customer. A business proposal must be well-written, clear, and concise in order to convince the reader to take the desired action.

A business proposal is a formal response sent to an RFP (request for proposals). It is a way for the seller to convince the buyer that their proposed solution is the right one in order to win business. Business proposals are meant to persuade a prospective client.

A business proposal typically consists of four main points: what are the challenges, how your solution solves the problems, why they should choose you over others, and the best pricing options available. The price is typically stated in the document. If a business is requesting proposals, they should be sent in their format. An RFP response should include specific details about the scope of work and the cost estimate.

Here's a sample template to use while creating a detailed business proposal.

Why do you need a business proposal?

A business proposal is a key part of the business development process . It is a document that outlines the business goals, strategies, and tactics that will be used to achieve those goals. A proposal is used to convince potential clients or partners that your business is the best option for them.

It's typically used to pitch an idea to a potential client or customer. A well-crafted proposal can help you win new business and close deals.

Your company might be expanding into a new market and need to propose a new product or service. Or, you might be approached by another company with an opportunity you'd like to explore. Maybe you've identified a gap in the market and want to propose a new product or service to fill it.

How To Prepare For a Business Proposal?

Well, we do have a comprehensive guide to business proposal creation with templates and examples, but if you need a more brief explanation, keep reading!

When preparing for a business proposal, it is important to do your research and understand the client's needs. You should also have a clear understanding of your own company's capabilities and what you can offer the client. Additionally, it is important to be well-organized and to have a strong pitch.

You should have a clear understanding of your target audience and what will appeal to them. You also need to have a good grasp of the competition and what they are offering. In addition, you should be familiar with the terms and conditions of any potential contracts that may be involved.

Your proposal should be neatly formatted and easy to read. It should also be free of grammatical errors and typos. Be sure to proofread your work carefully before submitting it.

Make sure you provide complete contact information, as well as an outline of your proposed solution or service. If possible, include testimonials from past clients who have been satisfied with your work.

Remember that you are offering a valuable service that can help the reader achieve their goals. Believe in yourself and your ability to succeed, and you will be able to deliver a winning proposal every time

How To Write a Business Proposal?

When writing a business proposal, make sure to follow this brief outline:

- Introduce yourself and your company

- Outline the proposal's purpose

- Explain the problem that you're trying to solve

- Describe your solution

- Explain the benefits of your solution

- List your qualifications

- Request a meeting

It should include an overview of the product or service, information about the company proposing it, financial projections, and terms and conditions. A well-crafted proposal can help your company win new contracts and increase sales.

Here's another sample template you can use while creating a business proposal:

Business Proposal Template Checklist

Here's a story of our customer John who joined the Decktopus community 2 years ago.

John had been working in sales for years, but he had never worked in a company that sold products. When he was hired by a new startup, he was excited about starting making sales and increasing profits. However, he soon realized that there was no one in the company who knew how to sell. The founder of the company told him that he would need to create a presentation template to share with the other reps.

John wasn't sure where to start. He read article after article, trying to gather information about what made a good business proposal. After weeks of research, he finally created a template that he felt confident in sharing with his fellow reps. He was excited to see how it would help them increase sales and profits.

This is the outline we gathered while our support team helped him along the way:

-Executive Summary

-Problem/Opportunity Statement

-Business Plan

- Marketing Plan

-Financial Plan

Types Of Business Proposals

An unsolicited proposal is one in which the company offers a product or service to a potential customer who has not solicited it. Here's an unsolicited proposal template .

A solicited proposal is one in which the company responds to a request for proposal (RFP) from a potential customer. Here's a solicited proposal template .

A proposal to bid is a document that a company submits to a potential customer in response to an RFP.

The purpose of the proposal to bid is to persuade the potential customer that the bidder's product or service is the best option among those being considered.

Here's a proposal to bid template .

Business Plan Structure

A business plan has three main sections: the executive summary, a description of the business model, and financial projections.

The first section is an introduction that should be no more than one or two pages long. It should include a brief overview of your company, its products and services, and how you plan to make money.

The second section, a description of the business model, provides details about your company's competitive landscape, industry trends, and how you plan to reach your target market.

The marketing model is an informative section that should include detailed information about the industry competition and build-out plan. This part of the document can be several pages long and will help investors understand your company's place in the market.

While all three sections are important, remember that potential investors will likely focus on the financial projections most closely when deciding whether to invest in your company. The financial projections section is important because it shows potential investors how you expect your business to grow over time.

A well-crafted business plan can help convince potential investors to put their money into your company.

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Business Proposal and Business Plan: What’s the Difference?

Business proposal and business plan are relatively similar but distinctively different terms, making many use these two words interchangeably.

You’ll see distinguishing features in their content, structure, writing style, purpose, and goals. Even so, there are various similarities between a business proposal and a business plan.

The main distinguishing factor to note is that a business proposal documents the growth strategy and presentation of facts, while a business proposal is a specific ask for an individual to take action (buy your service/product, partner with you in business, and invest in a particular business) . 

Let’s look at the two terms in detail and highlight a few examples when it’s appropriate to use.

What is a Business Proposal?

A business proposal is a company’s documentation that goes directly to its prospective. It’s usually written in an attempt to sell a company’s product or service.

While a business proposal is not an estimate, it’ll have certain financial details. An estimate is unofficial and simply a way to skim over the real costs without presenting the real picture.

In a nutshell, a business proposal shows a particular business idea intended to get investors to support this particular endeavor being suggested.

Although a business proposal shows an overview of what the company does (just like a business plan), its main aim is to provide information about the suggested business idea. 

It answers any questions or concerns potential investors may have about the suggested business idea.

Prospero business proposal generator can help you easily draft a competitive and compelling proposal to beat other bids. With its user-friendly interface and various proposal templates , you don’t have to create everything from scratch.

Let’s now look at the importance of a business proposal and a business plan.

Reasons for a Business Proposal

The main reason a proposal is written can only be understood based on the type of proposal you want to draft. They’re two types of proposals; invited and non-invited proposals.

Invited proposal

An invited proposal is submitted in response to an advertisement from a potential client. A good example is government agencies inviting contractors to bid on a particular service.

Alternatively, businesses request a proposal from a group of suppliers they’re willing to consider as prospective clients.

Non-invited proposals

Non-invited proposals, on the other hand, are submitted to potential clients even when they haven’t requested one. In both instances, a company must develop a compelling proposal to convince buyers. 

Proposals are limited in the scope of a particular need or project and written to specific audiences.

The main reason why businesses write proposals is to solicit or grow company opportunities. You can think of a proposal as an external document to present or sell the company to external players.

It shows what the business is all about and how it intends to carry out a particular project or use that opportunity to generate revenue for both parties.

What is a Business Plan?

A business plan is a factual description of a company on the operational and executive levels. It’s a written presentation of a company’s grand vision.

The document is typically tactical; it states where and when you want to start a project. Moreover, it will highlight when you’ll want to move on to the next phase of the project and how to accomplish that project.

It makes potential investors interested in a company (especially small startups that haven’t made a name for themselves).

A business plan will also provide an idea of what the business requires from professionals, such as attorneys and potential employees. It indicates whether or not a company’s business goals are realistic, let alone achievable.

Reasons for a Business Plan

Business plans are visions for your company and how you intend to execute all these visions. They outline financial projections of what a business will cost to develop and operate, plus an estimate of the revenues the business will generate.

Its main purpose is to provide a reasonably detailed description of the company for use by potential investors, suppliers, accountants, and prospective employees, among other people. For instance, one of the prerequisites for an SBA loan is an extensive and organized business plan.

Moreover, it’ll provide a quick but comprehensive view of what your company does and its chances for success.

The main reason companies write business plans is to convey and record information.

Structure of a Business and Plan Proposal

Here, the two documents have various components featured on them. Here’s a detailed description of their structure below:

Structure of a Business Proposal

Overall, the structure of a proposal will depend on whether it’s solicited or unsolicited.

A solicited proposal responding to a request for proposal takes the format of an RFP. Here are the components of a business proposal:

• Usually, it takes a quick description of products and services relevant to the RFP goals.
• Outlining the company’s scope of work.
• Answers to questions posed in the RFP.
• Estimate detailing tools, materials, labor, delivery, and other elements that’ll affect the project’s cost.

An unsolicited proposal to create a business opportunity follows the same format. It, however, anticipates questions potential clients might have .

A proposal is a marketing document designed to convince prospects to do business by presenting a value disposition plus a call to action.

Try creating your business proposal here .

Structure of a Business Plan

A business plan has three components; sales tactics, business model description, and financial goals. More elaborately, it consists of the following section of information:

• A summary of the executive
• Product/service description
• Industry analysis
• Operating plan
• Marketing strategies  
• Internal analysis
• Built-out plan
• Structure of leadership 
• Introduction of management 
• Financial goals

The business plan is more like an information document displaying the company’s operation and potential.

Many companies fail to follow this format while writing their business plan or proposal, a reason why most don’t win bids or prospective clients. 

Using Prospero to write a professionally compelling business proposal and integrate your business plan can help you get investors interested in your company so that they want a sit at the table.

What’s the Difference Between a Business Plan and a Proposal?

Business proposals differ from business plans in content, writing style, purpose, goals, and structure.

The sole distinguishing factor between the two terms is that a business plan is a factual presentation of facts, whereas a business proposal is an external market document that highlights a quote and a call to action.

Let’s look at some distinguishing features between the two terms:

Business Proposal vs. Business Plan

A business plan provides a detailed description of how the business was set up, plus its project.

On the other hand, a business proposal is a purposeful sale document illustrating how a business will execute a particular project. Usually, it’s drawn and submitted to another enterprise or organization putting forward a business arrangement.

In addition, the structure of a business plan contains three elements, including a description of the business model , sales tactics, and financial projections.

On the other hand, the structure of a business proposal takes the format of an RFP if it’s solicited.

A business plan shows the scope of a business and, in turn, clarifies your thinking as a business owner and also gives you information that you hadn’t considered before.

Conversely, proposals show a limited scope of a specific project or need for a particular audience.

While trying to craft these two documents, you must seek proficient experts to help you write compelling proposals and plans to convince potential investors and other partners to invest in your business.

Types of Business Plans and Proposals

A business proposal can be divided into solicited and unsolicited proposals. How different are they? Let’s delve right in.

Solicited Proposals

This is presented in response to a request for proposal (RFP). It’s usually submitted responding to a work statement from sponsors.

These sponsors use the request for proposal to solicit a specific proposal for research, training, or to provide services or goods. The RFP includes standard terms, conditions, and assurance that the company is asked to accept. 

A good example is when an organization or government agency wanting to buy products or services from a particular sector invites contractors to place bids.

In other scenarios, some businesses will ask suppliers to provide RFP to those they’re considering a partnership with.

The business is competing against other businesses that want to secure the same contract. It’s, therefore, in their best interest to provide compelling and competitive business proposals.

Prospero can assist you in such instances; it has the experience and expertise to curate excellent proposals that win contracts. Call it today to generate a proposal with its Prospero business proposal generator .

Unsolicited Business Proposals

This proposal is submitted to potential clients, even when they haven’t asked for one.

In such circumstances, a business wanting to secure a contract will suggest a product or service to a potential organization in return for funds.

A good example is when an organization tends a proposal to develop an application or renders some training services to its staff.

Just like solicited business proposals, a company must curate a well-researched proposal that will convince prospective clients you’re the right candidate for the job.

Types of Business Plans

Business plans are also categorized into four types, including

• short plans,
• presentation plans,
• working plans,
• and what-if plans.

These types require different degrees of labor and are not always proportional to results.

Presentation Plan

Using PowerPoint to outlay information about a business changed the way companies created their business plan. Many businesses lose sleep trying to figure out how you’re going to present a business plan that can affect a company’s future.

Working Plan

This is a plan used to operate your business. The plan can be long in detail but shorter in presentation. There’s no room for informality or candor while preparing it.

If you’re considering presenting this plan to a loan committee, you’ll have to describe a competing rival primarily on a price basis.

A working plan used to create outlines for internal use may have some elements omitted; probably, you’ll not need to add an appendix with a resume of key executives.

Internal policy considerations may guide what to include or exclude in the working plan.

What-If Plan

A business must prepare for unforeseen circumstances. The company may want to have a contingency plan when seeking bank financing.

This plan is usually curated in the worst-case scenario that you can foresee your business surviving. It’s important to shelter yourself from things like loss of market share, the defection of a key member of management, and heavy price competition.

A contingency plan can help cover the fears of bankers and investors by demonstrating that your business has considered more than one rosy circumstance.

Moreover, your business can benefit from a what-if plan in situation acquisition. It can help you outline the worth of the acquisition and how it can affect the core business.

In summary, you can say that a business plan is more of an internal document, whereas a business proposal is an external one that is used to sell the product or service of a company to prospective clients.

In addition, a business plan guides the activities of a company internally in terms of revenue projections and marketing strategies that must be achieved in a particular time frame.

On the other hand, a business proposal will show external parties like a government agency and sponsors what the business is all about to convince them to invest in your business. The proposal should outline how you will carry out a particular project to generate revenue.

Whether trying to curate a business plan or proposal, it has to be compelling and competitive to beat other bidders. 

Why Not Give Prospero A Try?

Working with Prospero to generate professionally written proposals or plans is essentially wise. It has a variety of templates for different industries and comes with a lot of customization options. Some ready-made content are also available so you won’t need to write from scratch every now and then.

You can manage and track the performance of your proposals through its built-in analytics, so your sales team would be more productive and efficient.

It’ll increase your chances of securing contracts and proposals that can take the business to the next level.

Sign up for free today and get your free trial!

ABOUT THE AUTHOR

Abbey Claire Dela Cruz

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Why Create a Business Plan?

How to rescind a business letter, 6 types of business plans.

• How to Create a New Business Plan
• How to Conclude a Business Plan

A business plan and a business proposal are very different documents, with different purposes and goals. A business plan is a factual broad description of a company on the executive and operational level. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client and solicit the client's business. A business plan is a written presentation of fact. A business proposal is a quote and call to action.

Reasons for a Business Plan

A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.

Reasons for a Business Proposal

Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposal submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.

Business Plan Structure

A business plan has three elements: description of the business model, the marketing model and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.

Business Proposal Structure

A business proposal written in response to a Request for Proposal (RFP) should follow the format requested in the RFP. Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project.

An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.

• Entrepreneur: An Introduction to Business Plans
• Forbes: The Difference Between a Business Plan and Planning

Victoria Duff specializes in entrepreneurial subjects, drawing on her experience as an acclaimed start-up facilitator, venture catalyst and investor relations manager. Since 1995 she has written many articles for e-zines and was a regular columnist for "Digital Coast Reporter" and "Developments Magazine." She holds a Bachelor of Arts in public administration from the University of California at Berkeley.

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• 1 5 Types of Business Documents
• 2 What Does a Business Plan Consist Of?
• 3 The Importance of a Business Plan
• 4 What Is the Relationship Between the Business Plan, Marketing Plan & Sales Plan?

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The difference between a business plan and a business proposal

Whether you are in business, employment, or college pursuing a degree, understanding the basics of a business proposal is a skill that you must have. Most people use the terms business plan and business proposal interchangeably. These two documents are very different. A business plan is different from a business proposal in terms of content, structure, writing style, goals, and purpose. The most important difference to note is that a business plan is a written presentation of fact while a business proposal is a price quote and a call to action.

According to an article on Entrepreneur.com , a business plan is a document that outlines a detailed description of how a business is set up. It is a 5-year plan of a business showing the company structure, products and services, market findings from research, marketing strategy, planned budget and financial projections. It can be simply defined as the factual and wide description of a business and its projections. A business plan can be drawn by a start-up as well as a going concern.

A business proposal is a purposeful sales document formulated to illustrate how a business will carry out a project, give the value of the project to the prospective client and ask for the client's business. Therefore, it is a document that a business submits to another enterprise or organization putting forward a business arrangement.

A business plan ideally comprises three elements: description of the business model, the marketing strategy and financial projections. It includes informative sections, specifically the executive summary, business description (products and services), marketing plan, industry analysis (competitor analysis), build-out plan, internal analysis, operations plan, leadership structure or introduction of management, and financial projections -- discussion of financial concern and projection of results. The opening page is the executive summary. It can be an intense abstract or a detailed but precise marketing tool to draw interest in the plan. The business plan is an informational document intended to factually showcase the company's operations, goals and potential.

According to Sean Kerner from Tech Republic, the format of a business proposal depends on whether it solicited or unsolicited. A solicited proposal and in response to an RFP should take the format called for in the RFP. Usually, this entails a quick description of the services and products offered by your business and clearly showing their relevance to the goals of the RFP, a replication of the scope of work, response to specific questions raised in the RFP and a quotation detailing materials, equipment, labor, delivery and other basics of the project outlay. An unsolicited business proposal may or may not take the same format. The intention is to create and develop a business opportunity, and so it is advisable to follow the same format or any other that is popular with the industry or business. Be keen to address all the questions that the potential client might have. With an unsolicited proposal, it is up to you to decide the structure. Whichever format you choose, ensure that the proposal is professional, highlights key areas of interest, presents a value proposition, is thoroughly researched and loaded with facts and with a call to action.

A business plan is required for two main reasons. It clearly defines the scope of the business and in the process clarifies your thinking as the proprietor of the business. It offers you information that had not been considered previously. Simply put, it documents the vision of the business and how it will be achieved. This guides the business towards a practical strategy to guide the business for the time-frame enclosed by the plan. It is the blueprint to success of the business. It outlines strategies for converting the ideas into core competencies. It also presents the financial projections of starting and operating the business as well as estimation of revenue generation from business activities. Secondly, it offers comprehensive business information for use by potential investors and employees, suppliers, accountants, attorneys and other stakeholders. The primary function for a business plan is to record and pass on information.

A business plan is also used to raise funds in form of a business loan, venture capitalist, angel investors or incubation. When approaching these money lenders you must present a thoroughly researched and realistic business plan. The investors need to be sure that you are confident and truthful about the market statistics and financial projections indicated in the report. A business plan should be as truthful as possible because it is the blueprint and vision of the company. It provides a checklist of whether the objectives of the business are on track. According to experts, a professional business plan requires about six weeks of in-depth research and preparation. It is not possible to whip one a day before your appointment with investors.

The reason for a business proposal can be well explained based on the type of the proposal. There are two major types of business proposals: invited and non-invited. An invited proposal is submitted in response to an advertisement from the buyer or client. For instance, organization and government agencies wanting to purchases services and products from private suppliers invite contractors to place their bids. Alternatively, some businesses ask for Request for Proposals (RFP) from a selection of suppliers that they willing to consider as a prospective partner. In each case, the business is competing against other bidders. It is in the interest of your business to present a competitive and compelling business proposal.

Non-invited or unsolicited proposals are submitted to potential clients even when they have not requested for one. In this scenario, you give suggestions to the company or organization to purchase services or products in return for funds. For instance, you can tender a proposal to develop an app for an organization or training services for its staff. The most important thing in both cases is to come up with well researched offer to convince buyers. A business proposal is limited to the scope of the specific project or need. In addition, it has a specific audience. The primary function for a proposal is to solicit or grow a business opportunity.

You can look a business plan as more of an internal document. A proposal on the other hand is an external document used for presenting or selling the business to an external player. A business plan guides the activities of the business internally in terms of marketing strategies and revenue projections that should be achieved. A proposal shows the external players such as governments, donors or business partners what the business is all about and how it intends to carry out a project at hand or use the opportunity to generate revue for both partners.

For more information, here is an article on how to write a business proposal .

Entrepreneur.com: An Introduction to Business Plans https://www.entrepreneur.com/article/38290

Win more clients by creating impressive digital business proposals, price quotes, and contracts using ClientPoint Software

If you want your business proposals, price quotes, and contracts to stand out above your competitors and give you the best chance at winning new clients, use ClientPoint's Proposal Software . It makes creating and formatting professional business proposals, price quotes, and contracts fast and easy.

Related Readings

Proposal writing tips, a business proposal checklist to help you win more clients, 8 reasons why paper-based business proposals are dead and digital business proposals are superior, what is a business proposal and how to write it for b2b sales.

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What is the Difference Between a Business Plan and a Business Proposal?

Tore Medhaug

In order to send an official business proposal, you have to have a business plan. These are two different document types that people often confuse and mix.

Let’s take a look at the difference between the two, starting with the document you should have in place before submitting an official business proposal.

What is a Business Plan?

A business plan is a document that describes what your organization looks like and what services and deliveries you would provide.

As a student at BI Norwegian Business School , I learned that a business plan should include the following three elements:

• Executive summary: Describing your business, organization structure, etc.
• Marketing plan: Marketing strategy, different marketing analyses (Porter5, SWOT, 7Ps, Pestel)
• Financial: Revenue, expected revenue, etc.

A business plan is a document you would not typically send to your client but to lawyers, insurance providers, banks, suppliers and other stakeholders that would find this relevant for understanding your business and its value.

What is a Business Proposal?

A business proposal describes what you can deliver, time frame, amount, cost and your terms and conditions. This is a document you would use to respond to a specific request from your client, or you would send it to your client or prospect describing what you can deliver, at what price.

When you respond to a specific request, also known as an RFP (request for proposal), you should follow this rule of thumb:

• Always reply in their format
• Reply specifically to what they are asking about
• Describe how you can achieve their goals
• Outline the scope of work
• Provide a cost estimate

Use a proposal solution to create bid-winning content

There are many different ways to write a business proposal, and many different solutions to write it with. For the best possible outcome in terms of control, cost-efficiency, time savings and security, use an enterprise-grade co-authoring and automation tool.

The proposal solution XaitPorter is used by companies all over the world for this purpose. Here are six key advantages of using XaitPorter to create your business proposals and other high-impact, high-value documents:

• Cloud-based : Seamless team collaboration from anywhere, at any time.
• One document: Collaboration on the same document – simultaneous editing.
• Auto formatting and numbering : No manual formatting or numbering.
• Custom layout: Create professional documents in accordance with brand identity guidelines.
• Reuse content: Built on a database – enabling easy reuse of content.
• Export/publish document: Export to a variety of formats, including PDF and Word.

Tore holds a Technical degree and has a variety of business courses from BI Norwegian Business School. He has previously worked for different oil service companies and IT companies. Tore used to be Norway's biggest self-proclaimed golf talent, and also has a big passion for Ice hockey.

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The Difference Between A Business Plan And A Business Proposal

A business plan and a business proposal are two distinct documents. Most people mistake them for each other, and a lot of articles on the internet that teach how to write a business proposal are actually just explaining how to write a business plan.

While a business plan focuses on a company’s goals, the problems and solutions it’s trying to address, its potential market size, keys to success, products and services, market execution, and more, a business proposal on the other hand usually focuses on how a certain project would be executed, states a quote for the project, terms & conditions, and several other key pointers.

These two documents are very different with each serving distinct purposes. So it is important you know whether what you need is a business plan or a business proposal at any time.

See Also:   10 Reasons To Write A Business Plan

Reasons For A Business Plan

A business plan envisions your pipe dream. It shows how your business goals, objectives, philosophies, industry analysis, target market, products & services, market execution, competitive analysis, financial projections, and a whole lot more will position the business for success.

It is a detailed document that investors, banks, accountants, and financially savvy individuals can easily review to know what your business is about, its chances of success, and how you’ve planned to scale.

Business Plan Structure

In preparing a business plan, here is a sample structure you should follow to get it done right:

• Executive Summary
• Business Description
• Market Analysis & Strategies
• Design & Development Plan
• Organization & Management
• Service or Product Line
• Sales & Marketing
• Funding Request
• Financial Projections

See Also:   How To Write A Business Plan: The Complete Guide

Reasons For A Business Proposal

Business proposals are usually solicited or unsolicited. A solicited business proposal is written upon request from an organization, institution, or individual. For example, if you receive a Request For Proposal (RFP), what you’re preparing would be a solicited business proposal. In this instance, you’d have to follow the requirements as stated in the RFP.

An unsolicited business proposal, on the other hand, is prepared in response to a client after a sales meeting, giving you more flexibility in curating the contents of the proposal.

Business proposals are limited in scope, and are thus, written for a specific audience.

Business Proposal Structure

Here’s a sample business proposal structure:

• Introduction
• Table of Contents
• The Body of The Proposal

In your business proposal, you will detail the scope of the work, materials needed, cost estimates, project timeline, previous clients, team members, achievements, and a whole lot more in the body of the proposal. It’s a marketing tool, and its goal is to convince the target customer to do business with you.

See Also:   How To Write A Winning Business Proposal: The Complete Guide

What Then Do You Need?

The variations between a business plan and business proposal are wide apart. As shown in this article, they serve different audiences and are prepared for different reasons.

If your goal is to seek investment or a bank loan, a bank and investor ready business plan is what you need. But if your goals are to convince a client to use your service whether the client has asked for a document showing how much value you’d add to them or not, a business proposal is what you need.

See Also:   How To Write A Feasibility Study Report: The Complete Guide

What are your thoughts on the difference between a business plan and a business proposal? Let me know by leaving a comment below.

Image Source: businessnewsdaily.com

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thanks for these information it is really gearing forward toward my goal.

I’m glad you find it valuable, Yusuf.

Do have a great time!

Thanks Edom, I have been reading your publication, they have inspiring, informative, education and above all priceless. keep up the good work.

samuel Chika

Thank you for the kind words and for being a reader, Chika.

I appreciate them.

Great read.I have always confused the two terms.Business plan means you plan for a business and that business has not yet started but business proposal it means you propose something in a business which is ready stand.Thanks for the detailed information.

You’re right Michael.

I’m glad you learned something from the article.

in my understanding, business plan is general road map for the company strategy, but business proposal is one away to find new market or potential client.

I was searching difference between B.Proposal and B.Plan. I found here, Thanks for the publication. IF you also publish “Samples” besides the templates will be more helpful to a person like me, who did not write proposal before.

My Best Regards

Thank you for reading and for the suggestion.

Hello Stan E.,

This is absolutely spot on. No unnecessary embellishments or needless journey. Straight to the point, self-explanatory and informative.

Thanks a million, Sir.

Thank you for reading, Figo.

Not many people really know the differences. They used both interchangeably. Thanks for the clarity.

Thanks Edom, your publication was most helpful to me. I am grateful sir, continue with the good work.

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The Difference Between a Business Plan and a Business Proposal

A business plan and a business proposal are very different documents. If you do an Internet search for how to write a business proposal, the results are predominantly focused on writing a business plan. Nevertheless, the two documents have different purposes and goals. A business plan is a factual broad description of a company and its prospects. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client, and solicit the client's business. A business plan is a written presentation of facts. A business proposal is a quote and call to action.

Reasons for a Business Plan

A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys, and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.

Reasons for a Business Proposal

Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposals submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.

Business Plan Structure

A business plan has three elements: description of the business model , the marketing model, and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, the introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.

Business Proposal Structure

A business proposal is written in response to an RFP--A request for proposal (RFP) is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals --should follow the format requested in the RFP.

Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project. An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.

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26 comments on “ the difference between a business plan and a business proposal ”.

Great work! the topic is really an interesting one, well a business plan is something organizing your work like with QuickBooks tool hub, and the business proposal is the opposite of the latter one. For better account, management one should download the QuickBooks tool hub. keep it up the great work. looking towards your next blog.

This could be the best and most simplified article on this issue I’ve come across. Straight to the point and very informative.

Mutesasira wilson

I have really liked it and thus so much grateful of the author,,, High arcuity comrades

Yoruba angel

i have never found it broken down as easy as this before. Thank you. it’s very helpful

Amazing job! The best and most informative article explicitly calling out the purpose and goals of a Business Plan and a Business Proposal.

I really found it helpful. Thank you

Shareefah Ajani

Very helpful and informative ,bunch of thanks

Randy Samuel

Thank you very much for the help.

Sochukwuma Abaeneme

I’m glad I stumbled on your website today. This is indeed a comprehensive Break down.

glad it was helpful

Isaac Game Mawulorm

Thank you. How do I contact you personally for further questions please?

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Thanks for this amazing content on difference on the business plan and proposal.

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One of the most typical errors seen by QuickBooks users is error 80070057, which specifies that the parameter is wrong, especially when the company file is accessed. This error code means you don’t have sufficient authorization to remove the files.

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Awesome quite impressive article thanks for posting this.

Geoffrey T.Crosby

I appreciate your thought there with that one, because of course I agree, but I’m confused with why you thought it should be added. Don’t you think plan vs. actual is included with point 3, “It’s specific. You can track results against plan,” and then point 8 “It has to bring the planning process with it, meaning regular review and course correction?”

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Major Differences between Business Plan and Business Proposal

Although the words are similar to a business plan and a business proposal are different. The purpose for creating a business proposal and business plan varies in its content even though in a majority of websites it is considered as same. The business plan usually consists of the description of a company and the process inside it. However, a business proposal states how a company is going to deal with a business project. While a business plan is written as a presentation style whereas business proposal was written to take an action.

Business Plan In a business plan, the vision of the company and the methods and process of getting that goal real will be documented. The business plan involves the financial aspects and vision about how the target will be attained. The purpose of the business plan is in providing the investors and suppliers a vision about the business. The main objective of the business plan is to provide information and keep a record of the goals of the business.

Business Proposal business proposals usually consist of a way to impress a potential client of the future partner. It will be consisting of the questions that may arise during the business. The audience for a business proposal will be limited and the main purpose of the project will be explained in a business proposal. The main reason for creating a business proposal is to make a business opportunity.

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Difference Between Business Proposal And Business Plan

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BUSINESS PROPOSAL

A business proposal is perhaps one of the most important documents every entrepreneur needs to learn how to write. It can spell the difference between success and failure in our business world today.

Writing a winning business proposal will generally involves a lot of initial groundwork or research about the prospective client. Once you become aware of  that which the  client seeks, then you are already  guided on how to write an impressive contents. Just make it clear, precise and simple.A poor or badly written Business proposal can ruin your chances of getting or securing a new client or buyer, but with great one, you are likely to win your way through.

You might not be a good writer even when you have great ideas, why not try getting someone who is, you never can tell who will be reading your business proposal. You must make sure there are no grammatical, spelling or punctuation errors as the case may be. More so, keep it simple as possible. Avoid complex vocabularies in your sentences.

Before one starts writing a business proposal, there is need to first understand what it is and learn the basics. Often times, most people use the terms ‘business proposal’ and ‘business plan’ interchangeably, giving you the impression that they the same. This is the most common misconception, A business proposal is not the same as a business plan.

A business proposal is a written document that offers a particular product or service sent to a  prospective  buyer or client. It’s generally a document you would send to a prospective client or buyer, outlining the services or products you’re offering, and explaining why you’re the best fit person for the job or offer. From this it can be seen that the essence of a business proposal is to offer a product or service to a buyer or client.

On the other hand, a business plan can be seen as a ‘formal statement of a set of business goals’; it also outlines how these goals would be achieved. Business plan is only part of what is included in a business proposal. One can certainly pull information from the business plan while writing a business proposal to a client. This is in fact, a great way to start your business proposal. So don’t be confused with the two; they are distinct and separate.

It is important to note also that business proposal can be solicited proposal or an unsolicited proposal. A business proposal when requested by a business or individual to complete a specific job; to supply a service; or in some instances to be the vendor of a certain product, is called a solicited proposal. While unsolicited proposals are those submitted to clients without request being made.

BUSINESS PLAN

Success in business doesn’t just happen- It usually comes through proper planning. Business planning is the first and most important step for the success of any business after the conception of the business ideas.

You may like this article: Starting A New Business Enterprise

The business plan document can range in size from a simple few sentences to more than 100 pages as the case may be. A typical business plans can have an average of 15 to 20 pages. And these broken into sections which may not be limited to: the overview or summary of the plan, a business description, market strategies, competition analysis, design and development, operations and management, and financial information.

Benefits of business plan

A well written business plan will help an entrepreneur seek investment for a business, whether it’s a startup or not. Investors need to see a business plan before they decide whether or not to invest or make commitment in the particular business. They’ll expect the plan to very comprehensive to cover all the main points.

Back up a business loan application. Banks and Other Lenders just like investors, would  want to see the plan and will expect the plan to cover the major points before they decide to grant loan facility or funding for a business.

A business plan will also help an entrepreneur to map the future. It is not just required to secure funding at the start-up phase, but an important tool   to help you manage your business more effectively in the future.

The most important reason to write out a business plan regardless of any financing option concerns is that it can help you to stay organized and remain focused. It is blueprint that can help you focus your energy and keep your company or team on track.Without proper planning of the business it is very possible for entrepreneurs to stray away from target or set goals.

More so, business plan is very useful for future appraisal of the business. With it, you can use to track your performance and make midcourse corrections when required.

Most entrepreneurs or aspiring entrepreneurs send out tonnes of business plans to various investors or lenders but are continuously turned down, and there are those that get good results   even on first attempt. The question now is…How do they do it?

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Business Plans and Business Proposals are important documents in business development and decision-making, they serve different purposes, audiences, and scopes. A business plan outlines the overall strategy and operations of a business, whereas a business proposal focuses on presenting a specific idea or solution to external stakeholders for consideration or approval.

What is Business Plan?

Business Plan can be described as a document that defines a company’s goals, operations, marketing objectives, financial projections, etc. It is like a roadmap for the company or organisation to achieve its goals and objectives. A business plan is a crucial document for both internal and external people of a company or organisation.

Features of a Business Plan:

• Executive Summary: A brief overview of the business concept, mission, goals, and key highlights of the plan.
• Business Description: Detailed information about the nature of the business, industry analysis, target market, competitive landscape, and unique value proposition.
• Market Analysis: Research and Analysis of the target market, customer needs, market trends, and growth opportunities.
• Marketing Strategy : Plans for branding , marketing , sales, and distribution channels to attract and retain customers .

What is Business Proposal?

A business proposal is a written document that outlines a specific project, product, or service offering and presents it to prospective clients, partners, investors, or other stakeholders. The primary purpose of a business proposal is to persuade the recipient to accept a business idea, enter into a partnership, make a purchase, or take some other desired action.

Features of Business Proposal are:

• Introduction: A brief overview of the proposal, including the purpose, objectives, and context of the proposed project or offering.
• Problem Statement: Identification and description of the problem or need that the proposal aims to address, highlighting the pain points or challenges faced by the recipient.
• Proposed Solution: Detailed explanation of the proposed solution or approach to solving the problem, including the features, benefits, and value proposition offered.

Business Plan and Business Proposal – FAQs

Who needs a business plan.

Business plans are essential for entrepreneurs starting a new business, existing businesses seeking growth or investment, and organisations undergoing strategic planning.

What should be included in a business plan?

A business plan typically includes sections such as executive summary, business description, market analysis, marketing strategy, operational plan, financial projections, and appendices with supporting documents.

How long should a business plan be?

The length of a business plan can vary depending on the complexity of the business and the intended audience, but it is generally recommended to be concise and focused, typically ranging from 20 to 40 pages.

Who writes business proposals?

Business Proposals are typically written by sales professionals, business development managers, consultants, freelancers, or entrepreneurs seeking to secure new business opportunities, partnerships , or contracts .

What makes a good business proposal?

A good business proposal is clear, concise, persuasive, and tailored to the needs and interests of the intended audience. It should effectively communicate the value proposition, benefits, and feasibility of the proposed solution while addressing the recipient’s requirements and concerns.

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Business plan vs business case: what's the difference?

Do a business case and a business plan sound pretty similar to you? We think so, too! However, those two words don't mean the same thing at all. So it's vital to understand the difference between a business case and a business plan.

What kind of entrepreneur would you be if you didn't know how to differentiate the two? In this guide on business plan vs business case, The Business Plan Shop helps you get your facts right.

What is a business case?

A business case is a document that provides the necessary justification to invest time or money in a new project, generally within a company.

Commonly used in bigger companies, the business case helps the decision-making process in the prioritisation of one project over another.

Big companies often have a vast variety of teams, and with all of them likely believing that their project is top priority, the company's money needs to be used carefully.

The difference between a business case and a business plan here is that the business case will be used for decision making inside the company.

What is the business case's purpose?

The business case must answer 4 questions:

What is the project?

Why should this project get picked over another?

Who will be involved?

How much will it cost?

The business case presents the project in detail. Whether it's a product or a service, a business case demonstrates what the project will achieve for the company.

The business case highlights the project's benefits, and how valuable it is for the company.

It could be a business opportunity, such as adding a feature to an existing product to boost sales, or implementing an organisational improvement, such as changing the customer support software to gain in productivity and serve customers better.

The business case introduces the people involved in the project, whether they're in the company or not.

It also gives an approximative value of how much the project will cost from start to end, including which team will be in charge and if external support or a third party will be used.

The business case should also underline that the team has the required skills to complete the project.

The business case gives an accurate overall cost of the project, as well as how much profit or cost savings it will bring.

This section shows how long the project will last, and what equipment, financial, and human resources will be needed.

Business case sample

When deciphering the difference between a business plan and a business case, looking at a short sample version of what a business case should look like might help:

The management is looking at improving Coventry's factory production line. The project would involve replacing the equipment on production lines 3 and 4 which were installed in 2004 with more recent equipment.

The cost for this modernisation is estimated at £150k, and would reduce the production cost by 5%, along with reducing the yearly maintenance cost by £5k, which would result in a total gain of £175k, taking into account the expected production volume in the yearly budget.

The replacement should take 3 days and line 3 and 4 will have to cease production during this period. The rest of the lines should continue to run as normal.

Business plans and business cases are not too dissimilar, but it's important to discern why they're not the same.

They both highlight an opportunity. The business case, however, is a short-term gain, whereas the business plan takes on a global and long-term approach.

The difference between a business case and a business plan also derives from the fact that the business case usually refers to a project and one aspect of the business, whereas the business plan presents a detailed plan of action for the entire organisation over several years.

The business plan cannot be completely accurate, as it cannot predict the future and will evolve regularly based on market trends and inflation.

The business plan is based on a series of hypothesis, action plans, and a long-term calendar. Contrastingly, a business case is concrete - mainly because it's aimed at creating a short-term gain for the business with a well defined return on investment.

To sum-up: a business plan is a strategic document, whereas a business plan is a tactical one.

We hope this article helped you in understand the difference between the two. Please do not hesitate to get in touch if you have any questions.

Also on The Business Plan Shop

• What is a business plan and how do I create one?
• Download our free business plan template
• Business model vs business plan: what's the difference?

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Pitch Deck VS. Business Plan: What is the Difference

• May 8, 2024

Pitch deck or a business plan—confused about which of these business documents you should create for your business?

Well, the short answer is both.

But, in a thriving startup world, where time’s a chase, knowing what will help you to make the most significant impact will make the choice easier.

Through this blog post, let’s help you understand the key differences between these two documents, i.e. pitch deck vs business plan , and instances when you will need them.

Ready to get started? Let’s dive right in.

What is a pitch deck?

A pitch deck is a concise visual presentation, often used by startups and emerging entrepreneurs, to introduce their business potential in front of investors and potential stakeholders.

These presentations explain the key details of your plan such as the problem, solution, revenue model, traction, financials, and organizational team through engaging visuals and simple text blocks.

Pitch decks hook the audience to your excellent business idea and persuade them to engage further or take action.

Pitch decks are important for a quick business introduction. But let’s now gather a basic overview of what a business plan is.

What is a business plan?

A business plan is a professional document outlining the goals, strategies, and operational aspects of your business. It serves as a guide for decision-making and offers a roadmap to achieve your business objectives.

Business plans, in general, include key components like executive summary, company overview, market analysis, products and services, marketing and sales strategy, operation plan, management team, and financial plan.

It’s one detailed document that will help you to secure funds from potential investors.

Now, that you have gathered a fair understanding of pitch decks and business plans, let’s understand what makes them different.

Difference between a pitch deck and a business plan

Pitch decks are crisp offering a macro overview of your business idea through sharp and remarkable visuals. Business plans, on the other hand, are immaculately detailed, offering a micro overview of what your business does and where it aims to reach.

Well, the differences between a business plan and a pitch deck are fundamental and we will now explore those differences in detail.

Pitch decks serve the purpose of familiarizing the audience with your business idea in a short time. They capture the audience’s attention, spark excitement about a business idea, and help you secure further discussions and meetings with potential investors.

Business plans, on the other hand, offer an in-depth detailing of your business framework, financial projections, and strategic objectives. They are required by banks to grant loans, investors to evaluate the business’s viability, and internally to guide the management and operations.

2. Length and Format

A slide deck is precise and concise. It summarizes your entire business idea within 10-15 slides, and sometimes even less.

These business documents are heavier on visual components. Instead of paragraphs, the important information is usually conveyed through crisp statements and bullet points.

Business plans, however, are extremely detailed and lengthy. While the length of a typical traditional plan varies between 20-100 pages, a startup business plan in a lean format can be as small as 1-2 pages.

These professional documents are heavier on text and include tables and charts to support the textual content. The design is kept minimal and professional and the information is organized neatly into digestible sections.

A pitch deck includes high-value information summarizing only the key aspects of your business plan. They focus more on the problem and the solution, revenue model, traction, competitive advantage, and key financial metrics of your business.

Such presentations also include your funding demand and are pretty straightforward in terms of content.

Business plans, however, provide extensive information detailing your business idea, strategies, resources, financials, and even the assumptions and justifications.

Generally, a comprehensive business plan includes an executive summary followed by a detailed description of the business, market analysis, products and services, marketing and sales strategies, operations, management, and financials.

However, one can adjust the contents and details of a business plan depending on their objective to write a business plan .

4. Audience

Pitch decks are essentially prepared to pitch to investors and venture capital firms for equity funding. However, that’s not it.

The very purpose of a business pitch deck is to educate the people about your business idea and stir their interest. So anyone who wants to acquaint themselves with the core fundamentals of your business in a short time is an ideal audience for a pitch deck.

Similarly, a business plan is also intended for a vast audience, including but not limited to, loan officers, investors, stakeholders, and the company’s internal team.

In fact, anyone who wants to have a deep, thorough insight into your business’s strategies, policies, operations, and finances can benefit from reading your business plan.

And those are the most fundamental differences between a pitch deck presentation and a business plan. However, let’s now understand different instances when you will require these business documents.

When to use a Pitch Deck?

A pitch deck offers a snapshot of your business and is most suitable for situations, events, and audiences that prefer to gather a level of information within a short span.

Here are a few instances where you would definitely require a business pitch deck:

• When you want to introduce your startup idea at investor meet-ups, networking events, and accelerator programs.
• When you want to get initial equity funding from investors and VC firms.
• When you want to secure an in-person meeting with an investor.

However, for all this to happen, you need a pitch deck that brilliantly captures the key essence of your business.

Well, it’s not that easy. From design to content—it takes a lot to create a 10-page, compelling pitch deck.

You must have figured out that creating a pitch deck is challenging given the crispness, conciseness, and briefness it requires.

Not anymore. You can now use AI to create your strategic pitch decks from scratch, requiring zero designing.

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When to use a Business Plan?

A well-mapped business plan is an asset that will take your business to quite a few places helping you realize your business goals. If you are wondering where will you require a business plan, here you go:

• When you want significant funding from potential investors.
• When you want to validate your business idea.
• When you want to plan for subsequent business stages that require a strategic roadmap.
• When you want to explain your complex business model.

Now, a business plan can only help achieve all those things when it offers a true and realistic overview of your business and its strategies.

Absolutely, it’s a difficult task. But with the right tools and aid, you can create a realistic plan that offers a roadmap to success for your business.

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What to Write First—Business Plan or Pitch Deck

Ideally, a business plan should be drafted before creating a pitch deck.

The business plan demands thorough analysis and research. Writing it first will encourage you to explore the business nuances in detail.

You are more in sync with your business idea and its strategies by the time you are done writing your business plan. Such understanding is essential to creating a pitch deck that reflects your startup’s potential in a true light.

A Way Forward

It’s evident that you need both—a business plan and a pitch deck, to venture successfully into your market. Instead of contemplating, let’s make business planning easier for you.

Upmetrics offers a range of AI-powered solutions for all your business and strategic planning needs.

Whether you need an AI business plan generator to create a thorough business plan or AI pitch deck generator for a compelling pitch deck—Upmetrics has got you covered.

No need to spend any more time worrying about where and how to get started. Our perfectly designed solutions will guide you to create stellar business documents in no time.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

Is a pitch similar to a business plan.

Not really. Business plans are textual offering a detailed overview of your business idea. Pitch decks, however, are concise and visual. It can be said that pitch decks are a byproduct of business plans. However, they are not the same.

When should you use a business plan?

Business plans should be used when you want to obtain financing from traditional banks. However, even angel investors would ask for a business plan when the funding demand is substantial. Apart from this, you use a business plan for strategic planning and internal guidance.

When should you use a pitch deck?

Pitch decks should be used to introduce your business idea to different audiences. It is extensively used to pitch potential investors and persuade them for financing.

Do I need a pitch deck or a business plan?

A business requires both a pitch deck and a business plan. It is preferable to write a business plan first before creating a pitch deck to capture the essence of your business effectively.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Goodyear looks to tighten up its oversight of businesses. Here's what to know

Business owners in Goodyear soon may need to apply for a business license with the city.

Business licenses were initially introduced to the City Council as part of a two-part solution to the city's influx of group homes and sober living homes.

The council on April 29 approved a zoning ordinance that was expected to help solve the problem by enacting a buffer requirement and requiring group homes to apply for a business license with the city.

However, the city is still working out the kinks in its business license proposal. The City Council unanimously voted to table the initial measure, but officials hope to get the measure voted on as soon as possible so it can take effect July 1 along with the buffer requirement.

The business license program would apply to all businesses in Goodyear. Here's what to know.

What's the difference between business registration and a business license?

The city currently only requires business registration. That program was implemented in 2006, City Attorney Roric Massey said.

When a business registers with the city, it is simply letting the city know that it will be operating there. But there is no permitting or regulation process, Massey said.

The new program will require businesses to obtain a license from the city to legally operate, which means the city can regulate them and apply penalties for noncompliance with the rules.

Many cities, including Avondale, Buckeye, Surprise and Glendale, require businesses to obtain a business license.

Once City Council passes the ordinance, the city will reach out to businesses to ensure they are contacted before the July 1 implementation date. Businesses will be sent a letter and an email if the city has it, City Manager Wynette Reed said.

The city plans to convert registrations for existing businesses into licenses this year without requiring any action from the business, Massey said. But next year, all businesses will need to apply for a license with the city. Businesses currently have to register annually and will continue to have to apply for a license annually.

The fee to apply for a license will be the same as the fee to obtain a registration, which is $75.

The license would require all businesses to allow the city to conduct an inspection of the property to ensure it complies with city codes. The business also would have to display its license.

Business owners also would have to verify they are licensed to conduct whatever business they are operating. For example, a beauty parlor operator would have to prove a beautician's license, while an attorney would have to prove a license to practice law in the state, Massey said.

City hopes to crack down on unlicensed group homes

That's where the tie to group homes comes in. Because the city is cracking down on illegal and unlicensed homes, all businesses would have to prove they have the appropriate licenses to operate. To operate legally, a license has to be obtained from the Arizona Department of Health Services.

An employee also is required to be on-site during operating hours.

If a business gives the city false information or operates unlawfully, their license will be in jeopardy and can be suspended, Massey said.

Any business operating without a license would be fined $300 for the first time. That fee would go up to $1,000 for the second offense, Massey said. Each day would constitute a different offense, which means a business could be fined $1,000 per day. If businesses fail to let a city inspector on-site, they could be fined up to $500, Massey said.

Some entities will be exempt, including churches.

City Council voices concerns about home-based businesses, lemonade stands

Councilmember Vicki Gillis expressed concern that the fees may not be high enough to incentivize businesses to obtain a license, particularly ones that are making a large amount of money from illegal operations.

After the civil penalties, Massey said the city could move toward criminal violations.

Councilmember Bill Stipp asked if a neighbor who sells Tupperware would need to obtain a business license from the city. While any home-based businesses would need a license, the city would not inspect the property, Massey said.

People who work from home and connect online with the public, such as accountants, would need to obtain a business license but would not be subject to inspections, Massey said.

Stipp expressed concern about shutting down home-based businesses and requiring freelancers to obtain business licenses. While one problem may be solved, another one might be created, Stipp said.

"I think that is the worst case of government interference possible. We're going to penalize those people because we've got bad actors somewhere else that we're trying to take care of," Stipp said.

But Massey said those businesses, or anyone conducting business in Goodyear, currently needs to register with the city. And the process of obtaining a license would be similar: to go online and fill out paperwork.

Councilmember Sheri Lauritano said she believed the city may have been too broad in its licensing plan. She requested carve-outs for home-based businesses and people like dog walkers.

But Massey said the city is recommending a broad brush in order to balance licenses in a non-discriminatory manner. And the city already has established some carve-outs by not subjecting them to inspections, he said.

Councilmember Brannon Hampton expressed concern that children who set up lemonade stands or sell Girl Scout cookies would need a business license.

"I don't think our goal is to shut down lemonade stands," Massey said.

The City Council ultimately decided to table the ordinance to provide more protections to home-based businesses and lemonade stands.

Massey hopes to bring the proposal back to the City Council as soon as possible to stick with the proposed July 1 implementation date.

How to file a complaint against an unregistered group home

To report suspected code compliance issues  with group homes or sober living homes, residents can download the Goodyear mobile app or use the  city's website . Non-emergency criminal issues can be filed to the Goodyear Police Department through the city's website . Residents are encouraged to call directly to report crimes that need immediate attention.

Reach the reporter at   [email protected]  or by phone at 480-259-8545. Follow her on X, formerly Twitter:   @AlexandraHardle .

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