Difference Between a Business Plan & a Business Proposal

Companies use written plans and proposals to outline specific procedures in the business environment. These items can be internal or external, where owners and managers create objectives for employees or request services or business relationships with other companies.

Facts

Business plans are written documents that describe a company and its organizational structure. Entrepreneurs write business plans to outline their new business venture. Business proposals are documents where companies present details for completing business functions.

Features

Business plans generally include sections on objectives, financial needs, target market, demographics and other information. Proposals include information on a cost of goods or services if the proposal is accepted by the other party. Construction companies often use proposals to bid for new projects.

Function

Business plans can be a road map for guiding a company through the business environment. Business owners can add information to this plan as the company grows. Business proposals are time-sensitive documents. Most companies prepare these with specific acceptance dates to ensure other business do not languish when making a decision regarding the proposal.

References

• Entrepreneur: Business Plan
• Business Dictionary: Proposal