Difference between business plan and business proposal

Business has a lot of words that often confuse people. People tend to mix their meaning and are unable to differentiate them. Business plans and business proposals are amongst these misleading terminologies. People often think of them as one and the same thing. Business plans and business proposals are totally different in their use and nature. Both are documents used in business but both have different purposes. Business plans reflect the long term plan of a business. It reflects the way a business plans to establish itself over a longer period of time. Business proposals on the other hand are not meant for longer term. They are an intention to work out a business venture with another business. The intended audience of both the documents also varies significantly. The business plan is intended for the management as well as the lenders and many others. The business proposal is however a document that is only intended for the other business with whom a business wishes to enter into a joint venture with. Then there is a difference of need. Business plans are needed for establishing a guideline for standing up a business from scrap. It usually defines the directions the business has to follow step wise in order to achieve that. Business proposals are really not for that purpose. They are short term and only needed to communicate a business’s intentions to work with another business. Business plans often help to raise the required capital needed for your venture. Business proposals don’t do this sort of work. Business proposal can be intended or unintended as well. A large public or private company may give an advertisement about pursuing an adventure and want to get third parties involved through an open bidding process. Unintended proposals are those in which the large organization is reached by the third party to pursue a venture with them in doing the business. In both cases the purpose is quite different from that of a business plan.

William King is the director of UK Wholesale Suppliers & Free Trade Wholesalers Directory: http://www.wholesalepages.co.uk/ , Wholesale Trade Suppliers Manufacturers & Wholesale Dropshippers: http://www.dailytrader.com/ , Wholesale Dropshippers & Wholesalers Dropshipping Product Suppliers Directory: http://www.aidandtrade.com/ and Canada Wholesale Suppliers and Dropshipping Directory: http://www.wholesale-canada.com/ . He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

Find More Business Plan And Proposal Articles