A project proposal is a formal relationship between an organization and a client. It is a blueprint that defines the concept of a project, the accomplishments of the project, the objectives and plans to achieve them.
A project proposal includes a set of activities related to the accomplishment of a project. It is a marketing document that creates a distinction between competitors and helps the client to choose the appropriate one. So it should always focus on the client requirements. A project proposal defines the significance of the project idea and the origin of the project.
Project proposals get formulated in the early phases of the project, which helps in determining time, budget, and resource management.
Why does an organization require a project proposal?
A project proposal is crucial for any organization. There are a few key reasons why organizations need it.
Firstly, it helps an executive to get a new project for an organization.
Secondly, it lets everyone in the team considering the same goals and priorities.
And lastly, it helps an organization to understand when to make any new hiring or budget management.
Advantages of a project proposal:
- Clear proposals define precise requirements of a project and define its clear roadmap.
- It defines the viability of a project.
- Clear project proposals help in fetching budget approvals and financial support from the organization.
- Clear project proposal gives a proper structure of the project to the organization and thus avoids the chance of misalignment.
- A clear project proposal helps in building a brand on a large scale.
- It ensures business growth by acquiring new clients.
- A detailed description of the project creates accountability in every step.
What are the different types of project proposals?
Formally solicited is a formal project proposal designed in response to a new proposal request. It states a client’s demands and needs in a document form called a request for proposal. This request for a proposal helps in designing the proposal process more accessible by preventing misunderstanding or lack of information, which may cause complications.
Informally solicited project is a request proposal that does not has specifications like goals, methods, deliverables, and many more. It does not include the client’s demands and specifications. It can be a starting point of the project before projecting a project’s viability.
Few projects called Unsolicited proposals are like cold calls, which is not expected or asked by anyone. However, it could be valuable if it hits the right audience. It is the most challenging type of proposal as it has to be very enlightening so that it can convince the customer. Also, it requires most of the research work to make it suitable as per the target audience.
The next type of project proposal is Continuation, which is an update or reminder form of a project proposal. It helps in getting an update over the ongoing project. It is the simplest to design and a follow-up mail to check for the correct fund flow, to discuss the progress of the project and to check for any modifications.
The other one is a renewal project proposal that is useful if the current project terminates. It helps in getting back a project by proving that the returns are more than the investments.
The last one is the supplemental project proposal. It helps to let know if more resources are in need than proposed earlier by proving the value of adding new resources. It also updates the new deadline for completing the project. It is generally designed when the projections have gone beyond initial expectations.
Questions that you must consider when writing a project proposal
Who is your audience?
It is essential to identify who your audience is and try to determine the relationships between them. Every stakeholder has its aims and preferences, and the proposal should be written in multiple versions based on the needs of the audience. It is very important to identify the kind of your audience and what you need to add to your proposal. For example, if you are preparing a proposal for the head of a technology department, then you need to use technical language and jargon. While on the other hand, if it is for a small business, then try to win them over using a simple and easy sentence, creating a positive impact on the company.
What is the core problem?
Try to figure out the core problem about which you are doing the project. Highlight the problems in the proposal and determine the solution to the problem. Make the solution clear and evident to attract the attention of the stakeholders.
What is your budget?
Good planning and strategy alone do not make the project successful, and the budget also plays a vital role in this. It is necessary to figure out and state the budget within which we have to work and how it will affect the goal-setting.
What is the client’s benefit?
To attract the stakeholders, you need to mention the benefits they will achieve through the completion of this project. The primary goals of the clients determine the benefit they will achieve.
Success and Deliverables of the project?
An ideal project proposal should mention the parameters for the success of the project. It must also include the deliverables that the stakeholders will expect to see at the closure of the project.
Project proposal elements
An ideal project proposal consists of six elements.
- Executive Summary
The executive summary, which is the “elevator pitch” for the project as it captures the attention of the audience. The executive summary is the most exciting part, as it is the parameter of deciding for the audience. It must be short and to the point and descriptive, and it should paint the picture of what success looks like. The aim of the executive summary is to motivate the client.
- History
The history part of the proposal highlights the previous successful projects of the company and also outlines how these projects ran smoothly, and these future projects can run more smoothly. By doing this, it will present the clients with the idea of how the next project will run smoothly.
- Requirements
Requirement comprises the items, materials, and resources needed for the project, and this should cover both external as well as internal needs of the project.
- Solution
This section should comprise of the solution to the client’s problems and must include the project management techniques, skills, and procedures that your team will use to work efficiently.
- Authorization
This section of the project proposal talks about the decision-makers of the project team who will decide and will have the final say on the issues or matters. It will also highlight which stakeholders will have the sign-off authority on the client’s side.
- Appendix
Information that is not part of the main project proposal is covered in the appendix section. Appendix section covers many more interesting details of the project, and also this is the section where team members and stakeholders can do deep research to learn more about the project.
Developing smart goals
The SMART system is the best way of establishing goals and objectives for your project proposal.
Specific: Before designing a project proposal, make sure your goals are clear, concise, and specifically mentioned to the task at hand.
Measurable: Make sure your goals are measurable. Either things go well or go off track, and issues need to addressed, quantifiable goals make it easy to develop milestones you’ll use it to track the progress data of the project.
Attainable– It is crucial to set achievable goals, and hitting such a target would mean an outstanding project that is beyond the expected level. The project’s core goal must be attainable, so enthusiasm stays high, and the work gets done within the limited time frame and resources to spare.
Relevant: You should keep in mind that the goal you are setting should be directly relevant to the project and must address the scope area within which you are performing.
Time-Based: Every job requires timeliness. The main agenda-setting of goals and objectives requires timeliness and specific dates to be its core. It will help in keeping the project on track and will make sure that all the members will be able to manage the work that’s ahead.
How to write a project proposal?
Before writing a proposal, just remember that you are writing it to obtain executive buy-in. You need the key people, such as decision-makers on your side to support your project and turn your vision into reality.
Step 1: Find and define the problem.
Showcase what problem you are addressing? Why is it a problem? Why does it need to be solved? It would be best if you made your audience see the problem the way you see it.
How can you define the problem?
Start strong: Decision-makers usually don’t have much time to look over your proposal, so you need to keep in mind that the pain point is described in such a manner that resonates with them.
Use factually correct data: You want your audience to understand the impact and the consequence of the problem. So, use factual data to back up your assertions.
Step 2: Present a solution.
Tell your audience how your project is going to solve the problem? Why is your solution a better option than any other alternative or substitute available in the market? Tell them why other solutions are not working for the situation.
How should you present your solution?
Predict questions and objections: Always be prepared to defend your project or the solution from all sides. For example, why your expensive solution is much better than any other less expensive one.
Make sure you show a larger impact: Usually, stakeholders are more excited about projects with a larger impact than those with a limited approach and limited impact.
Choose facts over opinion: Support your reasons with research-backed examples.
Step 3: Tell your success criteria and define your deliverables.
Provide the audience a picture of the functions and attributes of the deliverables, plus how to know if the project is successful
How to define your deliverables?
Define a delivery date: First of all, define what’s your project is about, what users can expect, and what will you deliver? Also, show when you plan to complete each deliverable.
Make sure you are offering a smart solution: Your success criteria will say whether the project would be a success or not. As mentioned earlier, always remember to keep your solution SMART.
Step 4: Describe your plan or approach.
It is one of the most critical sections of the proposal and pressures on how to achieve the project’s objectives. Moreover, it starts with the explanation of the approach and why/how it is relevant and effective. Also, explain how you will manage problems.
How can you plan?
Describe project strategies: Will you be going forward with the traditional waterfall approach? If yes, then why? Will you be using in-house staff, or consultants, or third party contractors? What will be their role and responsibilities? Here, describe the ‘why’ behind the decision you are making to complete the project.
Explain how you will address the problems: This will explain your project management plan’s risk mitigation strategies.
Step 5: Outline your budget and schedule
In this step, you will have to breakdown project costs and all the details about how you will meet the deadlines.
How to define your schedule and budget?
Provide all the details: Break down your budget into categories like supplies, tools, salary, capital, etc. Show all overhead, indirect costs. A detailed financial breakdown will shoe the stakeholders that you have done your research, and you don’t intend the waste their money.
Step 6: Tie it all together
In the end, conclude your proposal by briefly summarizing the problem, solution, and benefits. Focus on the significant parts and make your proposal appealing by restating the ideas or facts you need your audience to remember.
How to tie everything together?
Your proposal should tell a story: Make sure every section and element work together to form a cohesive whole.
Refrain from introducing anything irrelevant: Refrain yourself from introducing anything that doesn’t sound relevant or won’t contribute to the objectives of the project.
Step 7: Edit/Revise/Proofread your proposal:
Revise and edit your proposal as many times as you want to make it interesting, clear, helpful, and persuasive. Ask for critics, feedback to ensure the proposal is organized and visually appealing.
How to edit your proposal?
Check the language and tone: Your proposal must be audience-specific, so make sure that the tone and language are according to your audience. Check your proposal for common errors, such as grammar, punctuation, and spelling mistakes.
Should you use a project management software for your project proposal?
To get into the people’s head and make them realize the worth of your project, you must think like the project’s stakeholder and plan the idea which comes in the sphere of their needs. A project proposal works as the potential game-changer, and if it works out in the same way as you have planned it to be, then this would be a great achievement for the whole organization as well as for the industry.
A project proposal is a project in its own self and can be benefitted from the project management software. Software is an essential part of modern project management basics, with benefits such as:
Easier collaboration: Every good thing takes time. Similarly, a good project takes time and is the outcome of the dedicated team efforts. Using project management software makes collaboration easier, especially when the teams are working in different parts of the world.
Centralized workroom: A big and complex project requires a lot of research and data collection to build a compelling business case. Centralizing things makes access easy. Collecting and saving all the data you need in the same place reduces the workload and saves time. Since everything is recorded in the same place, the trouble of searching files and documents at different places is easily eliminated. A centralized project workroom ensures that everyone can access all updates, notes, and attachments on demand.
Communication in one place: When the team is dispersed in all parts of the world, it becomes difficult to make physical interactions. Communication features that include voice and audio conferencing, group chats, private messaging, comments, activity streaming, and presence are generally native to most of the project management software.
24/7 access– 24/7 access to the proposal copy can facilitate even last-minute changes.
If you need to make any changes to the project proposal before sending it off to the decision-makers, then you save a copy of your proposal in project management software. Luckily it is indeed a feature of the project management software that ensures you have the latest version and that you can make last-minute changes to it anytime.