Whether you are just starting your business or looking to launch your next product or service, you need to know how to write a project proposal.
For a new business, your project is an entirely new business.
If you have an idea for a new product or service, a project proposal with a clear objective, action items, success metrics, and the time frame is more likely to gain support from stakeholders.
Regardless of your project, starting with a project proposal template will ensure you include elements essential to communicate your project and win support.
A quality business proposal template includes six standard elements:
- Problem
- Objective
- Solution/Deliverables
- Budget
- Authorization/Stakeholders
- Appendix
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What is the problem your project proposal aims to solve?
Specifically, state the problem you aim to solve and provide a clear and concise history of the issue.
Your summary should include events that created the problem, metrics or measurements that quantify the problem’s impact on the business, and a timeline from the problem’s onset to its current status.
Think of this section as the executive summary. Your stakeholders should be able to read this section of your project proposal and understand:
- The nature of the problem
- The impact of the problem on your business
- Why it makes sense to launch a project that fixes the problem
- What is the Objective of Your Proposal
Use this section to describe your vision for solving the problem.
A project-worthy vision achieves more than simply fixing the problem. In solving the problem, your project should move your company towards success.
Keep an overarching question in mind when drafting the objective: “how does solving the problem align with your business’ strategic goals?”
Your audience will understand that your stated objective will both fix a problem and move your company towards its strategic goals if you adequately draft your vision.
Conversely, your audience should understand the business consequences of not acting to solve the problem.
Use the metrics from the problem section to forecast the future impact of ignoring the problem.
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What are the solution and deliverables you’re committing to?
This section includes the core of your project proposal. Your solution should be thorough, but concise.
Deliverables must be actionable. A stakeholder should read this section and understand the immediate and long-term steps needed to complete the project.
Utilize the oft-used business acronym SMART to guide your drafting:
- Specific
- Measurable
- Achievable
- Realistic
- Time-based
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What are the specifics of your project proposal?
A specific deliverable answers the question: “what will be done?”
Avoid vague descriptions. Leave little to interpretation. Anyone who reads the deliverable or solution should expect to observe the same set of steps once the project starts.
If your deliverable includes a series of steps, clearly list the steps one by one. Don’t allow the stakeholders to read assumptions into your project proposal because you have not been specific enough.
Your specificity should also directly tie the deliverables to the objective and the problem. The stakeholders should understand how your proposed solution addresses the problem and directly works towards the objective.
For example, assume your project proposes to improve customer retention (objective) by being more responsive to customer complaints (problem). The project is a customer service department reorganization.
A non-specific solution is: “Improve customer service department.”
A specific solution is: “Grow the number of customer service agents by 30%, and hold quarterly agent training with a specific focus on crisis mitigation, product returns, and customer satisfaction.”
If your solution does not specifically explain what will be done, it isn’t specific.
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What are the measurable results?
A solution is measurable if the following question can be answered: “how will the success of each deliverable be measured?”
Each deliverable should have at least one metric that gauges success.
Use quantifiable metrics as much as possible.
In the example above, the deliverables are quantifiable. The customer service agent headcount is increased by 30%. The training will be held quarterly. The type of training is known and identifiable.
However, not all solutions are easily quantifiable. For example, assume your project goal was to improve employee morale.
Morale and happiness are not easily measured. However, get creative and try to create a measurement.
You could survey your employee base about their happiness before the project starts, and again after the project completion. Evaluate the differences.
You won’t have exact numbers in this case, but you will have comparable data points to measure success.
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What are the identifiable restraints?
A deliverable is achievable if you can answer “yes” to the question: “can we complete this deliverable with the identified restraints?”
“Can we complete this” is an obvious element of an achievability. Restraints are the more troublesome element.
Restraints include time limits and resource limitations. A project proposal’s objective may include the solution to a problem that will revolutionize your business.
But, if the identified restraints make the deliverable unachievable, the project should not be approved.
For instance, if your project proposes to reduce overhead costs by 80%, this objective alone would make your business dramatically more profitable.
However, if restraints include maintaining the same employee base at the same salary level, and increased investment in certain areas and 80% cost reduction might not be achievable.
Keep restraints in mind when determining whether a project objective is achievable.
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How long will it take to complete the project?
Your solution should be time-based. Each deliverable should be limited in time, at least by a completion date.
If your deliverables are completed in stages, include an estimated completion date for each stage.
If known contingencies will affect your timetable, describe the contingencies and demonstrate how each deliverable complete date affects other deliverables.
For example, if you are implementing a new computer system for your office, your project deliverables will include computer hardware, software, wiring, and other peripherals.
The software can’t be configured until the hardware is available. The hardware can’t be installed until the appropriate wiring and power is installed. For this project, your time-based solution should demonstrate how a delay in the wiring deliverable will delay the hardware and software deliverable.
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What is the budget you’re proposing?
The budget section of your proposal should answer two questions:
- What resources are needed to complete the project?
- How will the business pay for the project?
You will likely have sales quotations and service quotations for expected deliverables. These are obvious requirements that must be presented in the budget.
However, resources include more than direct costs. Resources also include employees and company equipment used to complete the project (computers, machinery, etc.).
If your project requires existing company resources, the resources may no longer be available for other areas of your business. Decision makers must understand this opportunity cost.
Determine the source of funding before the project launches. Can your business afford the project with existing funds, or do you need to raise money?
If you need to raise additional funds, should you sell current assets, or should you find outside investment?
If outside investment is needed, should you take out debt, or invite new equity investors?
Your stakeholders will likely have opinions on how the project should be funded. If you don’t know which options they prefer, include multiple options on your budget, with the pros and cons of each option. (Check out our guide to building a budget.)
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Who are the stakeholders?
Who has the authority to approve, reject, or alter your project proposal? Identifying authorizer(s) is the most important aspect of this section.
You may have a single authorizer in this section, or many, depending on the nature of your project. Clearly identifying who will approve each element of your project is your number one priority.
With authorizers identified, think broader to determine additional stakeholders.
A stakeholder is any person in your business who has an interest in your project or will be affected by your project.
For example, if your project is a remodel of your entire office space, the authorizers might be limited to your top executive team. However, every employee is affected by the remodel and will need some level of communication regarding the project.
Lower level employees may not need to see your entire remodel project proposal. But, they will need a timeframe and an understanding of a transition plan. (Check out our article on relationship management and the secret to getting paid on time.)
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Project proposal appendix
You will accumulate more documents, studies, quotes and other details than any other stakeholder as the creator of your project. While these materials are essential to you drafting your project proposal, the authorizers and stakeholders don’t need to see everything.
However, make the materials available in an appendix in case stakeholders want more detail.
For example, a CFO may have a specific interest in sales quotations, service quotations, and other estimates that helped you create the budget for the project.
Make such financial information available in the appendix, but don’t overcrowd the body of your project proposal with this level of detail.
The project proposal is a roadmap that highlights the required information for the authorizers and stakeholders to understand the problem, objective, and solution without having to conduct the analysis you did to create the proposal.
The appendix provides evidence to back up your assumptions on any element and allows stakeholders to verify your work.
A quality project proposal template is a valuable tool that any business should use to investigate and launch new projects. Using the outline from above, create your own templates to ensure a consistent, and effective approach to business projects.
(Wondering how much your project should cost? Check out our article, How to cost your job appropriately.)
This article originally appeared on the Quickbooks Resource Center and was syndicated by MediaFeed.org.
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