Turning a concept into reality requires backing, no matter how outstanding the idea is. You need resources, funds, and support to get a new initiative off the ground, and the best way to secure those assets is to draft a standout project proposal.
Learning how to write a project proposal will help you convince stakeholders that an idea is worth the time, money, and materials needed to execute. This document explains how the idea solves a problem, helps the organization meet its strategic goals, and generates a profitable return on investment (ROI).
What’s a project proposal?
You’ve heard of an elevator pitch — a verbal proposal you could deliver during a quick elevator ride. A project proposal — sometimes referred to as a business proposal — is a document that expands upon a pitch’s details as a formal submission to decision-makers. Proposals define:
- The core value proposition
- Proposed roadmaps and project timelines
- Budget
- Objectives
- Goals
- Deliverables
The document summarizes your initiative with the intent of:
- Securing external investment
- Allocating staff and resources
- Procuring stakeholder buy-in and support
- Generating momentum and excitement
Ultimately, a project proposal sells your idea to key stakeholders and convinces them to sign on.
6 types of project proposals
There are six project management proposal formats, each fulfilling a specific goal. As a manager, understanding the expectations for each allows you to tailor the content and length to suit your audience.
1. Solicited project proposal
Use this format as a formal response to a Request for Proposal (RFP). RFPs detail the project you’re bidding on and establish content and formatting guidelines, like what to include on your cover page or the format necessary to qualify for consideration. Your submission will compete against others, so it’s essential to thoroughly research the client and their problem to make a compelling case for your initiative.
2. Unsolicited project proposal
Consider an unsolicited proposal a cold call. When unsolicited, a proposal isn’t responding to an RFP or competing with other contenders. But your pitch must still be persuasive enough to convince prospective clients that they need your solution — even if they don’t realize it yet.
3. Informal project proposal
Project management generates informal proposals in response to a casual client request. Because the customer informally solicited the pitch, the submission rules are relaxed, but developing a detailed proposal outlining the solution is still essential.
4. Renewal project proposal
Companies direct renewal proposals to existing clients in hopes of persuading them to extend service contracts. Aim to emphasize past positive results and demonstrate how you’ll continue to supply the customer with future wins.
5. Continuation project proposal
Continuation proposals are meant to communicate with stakeholders rather than persuade them to the cause. Distribute them upon project launch and at regular intervals to report on progress.
6. Supplemental project proposal
Whether due to unexpected costs or an expansion of scope, you can send a supplemental proposal to investors to solicit additional funds and resources during project execution.
Proposals versus charters versus business cases
While all three documents — project proposals, charters, and business cases — define and secure support for an initiative, they differ in their content and timing.
Project proposals are persuasive documents designed to sway stakeholders’ commitment toward carrying out the work. And managers create these documents during project initiation.
Project management develops the project charter during the planning phase. This document acts as a reference, defining:
- Project scope
- Objectives
- Goals
- Team responsibilities
- Stakeholders
It’s an official document that authorizes the project plan so work can begin. It also documents the client’s requirements that the project outputs must meet.
Finally, there’s the business case. As with the project charter, project managers generate the business case for approval once stakeholders formally accept the proposal. It answers questions like:
- What are the project deliverables?
- Which organizational goals will the project achieve?
- How much will the initiative cost?
- Who will be involved in project execution?
This document outlines the project’s worth and justifies the investment of time and money. It can also help prioritize one project over another or secure funding from external sources.
What to consider before writing a project proposal
Before sitting down with your team to craft a proposal, there are several factors to define so you can set up a strong case. Here are some primary elements to consider.
The audience
The first action item is to identify the decision-makers and their relationship with one another. You may need to create multiple proposal versions to address varying concerns.
Determine your audience’s needs by asking:
- What’s their familiarity with the project or problem?
- What background information do they have or not have that could impact their decision?
- Which topics require additional information?
- What do the stakeholders want to hear?
- What communication methods can improve understanding?
Pitfalls
Projects often fail to receive a green light if they lack clarity and persuasiveness. According to the Project Management Institute, the top reasons for declining an initiative are:
- A poorly defined proposal
- Failure to align the proposal with organizational goals
- Weak or questionable project benefits
- An unconvincing presentation
Have these common pitfalls front-of-mind as you work through the proposal creation process.
Background
A compelling pitch requires hard data. If you’re compiling a checklist of what to include in a proposal, facts and figures should be at the top. Create a convincing story by researching past projects, whether successful or not, to source:
- Statistics
- Evidence
- Examples
This information, especially when communicated through figures, graphs, and charts, substantiates your proposal and justifies investment in the project.
How to write a project proposal: 7 steps
Drafting a project proposal is daunting work — but you don’t need to go it alone. Bring your team together to divide development into tasks and leverage project management software to organize the process.
Here’s a seven-step guide to creating a convincing proposal.
1. Research
Avoid a cookie-cutter proposal by reassuring the client you understand not only their needs and the problem but also their corporate history, industry, and customers. Your team must conduct thorough research, taking into consideration:
- Background: Identify the objectives driving your customer’s interest and explore gaps in your knowledge that could impact project execution.
- Methodology: Decide how you’ll collect your data — competitor audit, client survey, or gap analysis — and which analysis methods you’ll use.
- Findings: Seek out and identify recurring themes in your analysis.
- References: Document which resources the team used. Were these sources credible and diverse enough to accurately represent the industry?
2. Draft the executive summary
The executive summary is similar to an abstract and introduces your proposal. Depending on the initiative’s complexity, this section will summarize the project in 1–2 paragraphs while enticing stakeholders to continue reading.
Your summary should include:
- A description of the problem you aim to solve
- An outline of the proposed solution
- The impact your solution will have on the organization
Don’t go into too much detail when discussing these subjects in the executive summary. You’ll offer in-depth analysis in subsequent sections.
3. Explain the background
Next, discuss the problem’s background, describe pain points, and use data from your research to persuade the reader that solving the issue addresses long-term strategy goals and will benefit the company. Consider answering these questions:
- Which challenge does the project overcome?
- What’s known about the problem?
- Has anyone attempted to solve the issue?
- What does existing research say?
- Why did past remediation efforts fail?
4. Explain the solution
After expanding on the problem, take the next logical step: presenting your solution. This section outlines the project’s approach to alleviating the issue. To flesh out the solution’s details, consider adding:
- The project’s vision statement
- The timeline to deliver project outcomes, including milestones
- A team introduction that includes roles and responsibilities
- A risk register and mitigation plan
- Clearly outlined deliverables
- The reporting tool you’ll use to track progress
Choose which documents to include based on the project’s scope. This section will be the longest in the proposal, detailing every aspect of your solution at length.
5. Define deliverables and goals
Precisely describing project goals and deliverables is crucial to securing stakeholder approval. All involved parties want to fully understand the project’s outcomes and visualize how you’ll leverage their investment.
When outlining deliverables, include:
- A description of the end product or objective
- A timeline outlining when the team will finalize outputs
- A list of SMART goals that align with deliverables
6. List resources
After you’ve defined the problem and presented your approach, solution, and deliverables, decision-makers should be ready to approve and invest in the project. Now, it’s time to detail the resources required to complete the job by listing:
- Project budget: Include the cost of everything your team needs to deliver, such as supplies, salaries, and advertising.
- Cost breakdowns: Include research into why you require specific resources so stakeholders understand how you’ll leverage their investment. You can also use the cost breakdown to mitigate risk caused by unexpected expenditures.
- Resource allocation plans: Provide an overview of the allocation plan, explaining where you expect to use resources.
7. Present conclusions
Wrap up by drafting a concise conclusion that ties the proposal together, referencing the executive summary. Then, summarize the outcome using a persuasive statement that outlines the project’s benefits and how they relate to company goals and objectives.
Before finalizing the proposal and submitting it to the prospective client or higher management, take the time to proofread the document.
A project proposal template outline
Creating a business proposal template allows project managers to draft proposals quickly and provides a comprehensive checklist. Consider making a template for each of the six proposal types so your team can efficiently respond to RFPs and other client requests.
Here’s an outline of what you should include. Customize it to suit both your organization’s and the client’s needs.
- Cover letter
- Title page
- Project title
- Subtitle
- Your name and organization
- Client’s name and organization
- Date and version
- Executive summary
- Background
- History
- Requirements
- Solution
- Proposal
- Vision and goals
- Risks and issues
- Reporting
- Deliverables
- Timeframes
- Reporting
- Success criteria
- Resources
- Budget
- Conclusion
- Appendix
- Supporting documentation
- Testimonials and social proof
The best tool to support your project proposal
Bolstering your proposal with an audience-friendly visual roadmap helps stakeholders comprehend how you plan to bring a project from conception to reality. Tempo’s Strategic Roadmaps makes illustrating your project plan easy so your proposal can showcase the development process. You can also leverage the power of Timesheets, Tempo’s time management application, to forecast staff and material requirements for your proposal’s resources segment.
