How to Write a Formal Proposal for a Construction Business

Creating a formal proposal for a construction business takes preparation.

Developing a formal proposal for a construction business requires attention to detail, time, commitment and careful planning. But if you’re passionate about your business, then it’s a small hurdle to overcome, according to Growthink.com. A successful proposal communicates your goals as a business and maps out a path for would be investors or banks. With a strong delivery, and by following a basic outline, you can complete this task and demonstrate to others how you envision your construction business now and in the future.

Things You'll Need

• Personal computer Word processing software Spreadsheet software Notebook Pen

Instructions

1. Create a title page. Place the title of proposal in the center and write your company name underneath.

2. Write an abstract. Choose and include three to five sentences that describe the contents of your proposal. A possible abstract sentence might read, “Our proposal demonstrates the need for a construction business in Old City area, and outlines our goals as a progressive young company.”

3. Write an executive summary. Summarize the contents of your proposal and discuss why money is needed for your construction business. Write eight to ten clear sentences that give the reader an idea how the money will be spent and how your business will thrive in the future. Here’s an example sentence: ”ZZZ Construction Business will solicit clients in the Old City area, and we will provide clients with quality home remodeling services.” Include the history of your construction business as well and brief readers on the number of employees and their level of expertise. You could write, “Our employees are all certified contractors who have 50 years of combined experience." The executive summary is the most important section in a proposal, says Foundation Center.

4. Write a project description. Include ten to twelve sentences describing your construction project in detail. Communicate well how the funding of your project will benefit many individuals, according to The University of Washington. Make each statement relevant to the construction industry. Include an accurate timetable, when you plan to start and when the project will be completed. Here’s an example of what you could write, “Our services will include the use high-end materials. We will complete this project in one year.” or you could write, “Our proposed project will offer customers the ability to customize home-building services to fit their needs.”

5. Write a customer analysis summary. Provide a brief analysis of your customers' buying trends. Include three to four sentences from researched demographic data that defines your average customers and provides an estimate of their buying habits. For a construction business, your average customers might be young professionals with growing families. Explain why these customers may purchase your services. Include customer characteristics.

6. Prepare a budget analysis. Create a spreadsheet. Include all costs associated with your construction business. List the price of equipment, salaries, rent, phones, website fees, marketing fees and so on. Include a budget narrative statement. Write two to three sentences describing your budget. Inform the reader when and whether you used estimates. Include donated items and start-up capital as well.

7. Create a table of contents. Include each section of your proposal and the appropriate page number.

8. Create an appendix section. Place any handouts, business documents or statistical data you used in the proposal.

Tips & Warnings

• A formal proposal could be ten to twenty pages in length.

• Avoid unnecessary jargon and write clear statements.

References

• Growthink.com: How to Write a Small Business Grant Proposal
• Foundation Center: The Executive Summary
• The University of Washington: TIPS for a “Standout” Proposal