How to Write a Business Proposal: Structure, Scope and Pricing

A business proposal is a document you send an organization to describe work you'll do, what's included, what it costs and how the client accepts it. To write one, open with a short summary of the client's need and your answer. Then set out the scope, with what's excluded and how each deliverable will be accepted. Follow it with a pricing section whose numbers add up, and end with how to accept, a validity date and the payment schedule. If the client sent a request for proposals, follow its order and answer every requirement it lists.

This page covers proposals to businesses and other organizations. For a freelancer's proposal to a single client, see how to write a freelance proposal. For how a proposal differs from an estimate or a quote, see estimate vs quote vs proposal.

Billed publishes this page. US federal definitions are quoted from the Federal Acquisition Regulation, FAR 2.101 (FAC 2026-01, effective March 13, 2026), and Billed features from Billed's own pages, all opened on October 30, 2026. It's general information, not legal advice.

Solicited or unsolicited

A proposal is either a reply to a request or your own idea:

• Solicited: the client asked for it, for example through a request for proposals (RFP). Use the RFP's section order and headings, and answer every requirement in the same words it uses, so the reviewer can check each one.
• Unsolicited: you're suggesting the work. For US federal agencies, FAR 2.101 defines an unsolicited proposal as "a written proposal for a new or innovative idea that is submitted to an agency on the initiative of the offeror for the purpose of obtaining a contract with the Government". For a private business, an unsolicited proposal needs to explain the problem before the solution, because the client hasn't defined it yet.

The sections

1. Summary: the client's need and your proposed answer in a few sentences. Write it last.
2. Understanding of the need: the problem in the client's terms, with any facts they gave you.
3. Scope: the deliverables, what's excluded and how each deliverable will be accepted (see the next section).
4. Approach and timeline: the phases, with a date or duration for each.
5. Pricing: the price of each part, any options and the payment schedule (see the sample).
6. Assumptions: what your price depends on, such as the client supplying content by a date.
7. Acceptance: how the client accepts, who signs and the date the proposal expires.

Writing the scope

Scope is where a proposal and the later invoice can drift apart, so be specific:

• Deliverables: list each one as something the client can check, such as 8 page templates rather than a general line like website design.
• Exclusions: name what isn't included, such as content writing or hosting.
• Acceptance criteria: say how each deliverable will be judged complete, such as approval in writing after one round of changes.
• Changes: say how extra work will be priced, such as at an hourly rate or by a new estimate.

For working out the hours behind the price, see how to create a project estimate.

Acceptance and validity

Give the proposal a validity date and say how it's accepted, such as signing and returning it or approving it online. Whether an accepted proposal is a binding contract depends on its terms and the law that applies. In US federal contracting, FAR 2.101 defines an offer as "a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract", and it calls responses to requests for proposals offers. For private work, ask a lawyer how your proposal's terms will be treated. To follow up after sending, see how to follow up on estimates.

Sample: the pricing section of a proposal

The figures here are a sample, invented for this example. A studio proposes a website redesign to a company:

1. Discovery workshop, fixed price: $1,800
2. Design, 40 hours × $95: $3,800
3. Build, 60 hours × $95: $5,700
4. Total for the proposed scope: $1,800 + $3,800 + $5,700 = $11,300
5. Optional: content migration, fixed price: $1,200. It's not in the total; the client can add it on acceptance, making $11,300 + $1,200 = $12,500.

Payment schedule for the $11,300 scope:

• 40% on acceptance: 0.40 × $11,300 = $4,520
• 60% on delivery: 0.60 × $11,300 = $6,780
• Check: $4,520 + $6,780 = $11,300

Taxes, if any, depend on what you sell and where; ask your accountant.

Where Billed fits

You can send the pricing section as a Billed estimate. Billed's estimating software page answers "How do I get client's approval on my estimates?" with: "Your clients can easily approve or reject the estimates you send via link." The page also lists: "Share your online estimates with your clients via shareable public link." For the document itself, Billed's estimate templates page describes its bid estimate template as "A bid proposal with the base bid by scope, add and deduct alternates priced on their own lines, addenda and exclusions." Decide how the client will sign, such as signing and returning the document or approving it online.

Related Articles

• How to Write a Freelance Proposal: Sections, Pricing and Follow-Up
• Estimate vs Quote vs Proposal: What’s the Difference?
• How to Create a Project Estimate
• How to Follow Up on Estimates (Without Being Pushy)

Frequently Asked Questions

What should a business proposal include?

A summary, the client's need, the scope with exclusions and acceptance criteria, your approach and timeline, pricing with a payment schedule, your assumptions, and how and by when to accept.

What is the difference between a solicited and an unsolicited proposal?

A solicited proposal answers a request from the client, such as a request for proposals. An unsolicited one is your own suggestion. For US federal agencies, FAR 2.101 defines an unsolicited proposal as "a written proposal for a new or innovative idea that is submitted to an agency on the initiative of the offeror for the purpose of obtaining a contract with the Government".

Is an accepted proposal a binding contract?

It depends on its terms and the law that applies. In US federal contracting, FAR 2.101 defines an offer as "a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract". For private work, ask a lawyer.

How long should a proposal be valid?

The proposal sets its own validity date. State the date in the acceptance section so the client knows when the price expires.

Can I send my proposal's pricing as a Billed estimate?

Yes. Billed's estimating software page lists: "Share your online estimates with your clients via shareable public link." Its FAQ adds that clients "can easily approve or reject the estimates you send via link."