The global business software market is worth nearly $400 billion, and it’s only growing.
If you’re selling software to companies, you need to master the art of the software development project proposal. Without those skills, your business could lose out on massive clients.
That’s why we’ve put together this guide on how to write a software proposal. By the end of it, you’ll have everything you need to develop a compelling pitch — the easy way.
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Software proposals are formal business plans/project proposals that convince organizations to purchase and use your software or development services. They describe your product, team members, features, pricing, and benefits for customers.
There’s a lot of competition out there for paid projects, so you need to be able to write a winning proposal that gets the job and displays your value as a reliable vendor. Otherwise, it will be like showing up at an interview without any clothes on: You’ll get turned down!
Why Do Companies Need Proposals?
Many businesses face tight deadlines or have to implement new software that meets changing regulatory requirements.
It isn’t efficient for them to figure out the process themselves because it would take too much time, cost more money than they can afford, and still result in sub-optimal results.
Software proposals are written like any other business or project proposal. But instead of just promoting your services (which can easily be faked), this calls for proof that you’re worth buying services from!
This means that your proposal should focus on showing proof of your skills, product, and team rather than empty promises.
What Should a Software Proposal Include?
A comprehensive software proposal includes at least these characteristics:
Whether you write a short one-page proposal or a long, comprehensive document depends on your clients’ needs and how much information they need to make their decision.
Many organizations request short proposals for initial inquiries; these are usually companies who are unsure if they should implement new software but want to get an idea about price ranges.
Other customers may ask for detailed proposals. These cover every aspect of the project to get concrete answers about the costs of developing updated software.
Depending on the company’s goals, it is acceptable to prepare both types of proposals.
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Software project proposals can vary between firms, so no set template fits everyone. However, it’s easy to find a free project proposal template using a tool like PandaDoc.
Regardless of the template, there are a few core ideas you should cover in any detailed project proposal — here’s how they apply to software:
Any project proposal needs an executive summary. It’s a concise, condensed version of the most important details from the rest of your proposal.
Your summary should include:
Even though it’s the first (and possibly only) thing your prospect will read, it should be the last thing you write. Don’t go into heavy detail, but cover all your bases.
It may be a security hole that must be patched to be solved. Perhaps an integration with another system needs to happen. Maybe they just need new functionality. Whatever it is, make sure to state the challenge you’re addressing clearly, and why.
The idea behind this step is to figure out who would be interested in reading your proposal and why they would want it at all. This helps you as a writer to focus your writing efforts on the right things.
It is essential to get your customer’s feedback regarding what they need. Use the information they provide (or any other research you did) and compile it into a list of requirements for your proposed solution. This also shows the client that your goal is to solve their problem, not just get paid.
Your proposal should include a description of what you will be doing for your customer or prospective client, as well as how long it will take and in what stages. Depending on the project’s complexity, certain things may need to be broken up into multiple milestones (e.g. design, development, testing). You don’t need to go into heavy detail with dates — that can come later.
You should also include any extra features or services you can provide for an additional price, as well as the discount they will receive if they pay upfront.
Your customers want to know exactly how much they are paying for and when they can expect to have their problems solved. So, be as clear as possible about what they’ll get from you. This helps remove any questions or doubts the customer may have about your skills or timing (and prevents them from needing to ask those questions).
So why should anybody buy software from you rather than your competitors? Why are they paying for your services instead of just doing it themselves?
Outlining everything your solution will do to solve the customer’s problem or fulfill their needs clearly illustrates what they are getting. If there are other similar products available, point out precisely where your product differs from its competitors. Make sure you talk about how this makes it a better solution!
One way to illustrate the details of your solutions is to outline your technology stack. The best way to say “We use these technologies” is:
If you’re pitching to a technology lead decision-maker or software developer, don’t be afraid to get technical here.
Pro tip: make a pros and cons list. Including a section outlining the pros and cons of your solution compared to common alternatives lets you speak from experience about why your solution is better. This helps the client make an informed decision about what is best for their company.
Once you’ve clearly laid out all the milestones and components of your project, it’s time to show how long each step will take. As mentioned before, it’s a good idea to break things up into smaller chunks that can be completed within a week or two (to increase flexibility).
A timeline also shows that you’ve done your diligence in terms of planning and preparation. For the client, it means they can reliably fit the business proposal into their overall schedule.
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