Consulting proposal template: nine sections, filled in, with three ways to price

A consulting proposal template is a fill-in document that tells a client what problem you will solve, how both of you will know it worked, what it is worth, how you will do it and what it costs. The consulting proposal template below has nine sections in a fixed order, and each one is filled in with a labelled made-up example so you can copy the structure and swap in your own client.

Our one strong opinion: the proposal is won or lost in the conversation before you write it. If you leave that call knowing the client's problem, how they will measure success and roughly what they expect to spend, the document mostly writes itself. If you do not, no template will save it.

1. Have the discovery conversation first, because the proposal should contain no surprises

A good proposal confirms what the client already agreed to out loud. Ric Willmot made this point in a reader comment on David Maister's blog: the proposal should summarize what you and the prospect already settled, and the fee should be the only new thing in it. Alan Weiss calls the agreement on objectives, measures and value "conceptual agreement," and in his newsletter on creating a proposal those three items sit at the center of the document.

So the first job is a conversation, ideally with the person who controls the budget. Ask these before you open a blank page. Most come from Willmot's list in the same Maister thread:

1. Why do you want this done now, and what has it cost you so far?
2. What does the ideal result look like, in numbers you already track?
3. What happens if the project does not happen, or fails?
4. What investment range have you considered, and are there limits I need to stay within?
5. Would you like a few options at different levels, or one recommendation?
6. Once you have the proposal, how soon could you start, and who else signs off?

Question 4 feels rude the first few times. It is less rude than sending a $90,000 proposal to someone whose ceiling was $15,000, which is a fine way to end a relationship by attachment. If you want more on running this call, the discovery call guide covers how to keep the client doing most of the talking.

Short version: if you cannot fill in sections 2, 3 and 4 of the template from your call notes, you are not ready to write the proposal. Book a second call.

2. Use nine sections in this order, and keep the whole thing to about two and a half pages

The structure below follows the nine parts Weiss lists in his August 2012 newsletter, where he also says the document runs about 2.5 pages regardless of project size. We have added a short note on what each section does and a filled-in line for each.

Here is a made-up example to fill it in. Priya Raman is an independent operations consultant. Her prospect is Harbor Lane Dental, a group of 12 clinics whose COO, Dana Okafor, mentioned on their call that the scheduling spreadsheet has a tab called NO_SHOWS_FINAL_v3. The clinics book about 400 appointments each per month, so 4,800 in total, and 9% of them are missed. Dana puts the average value of a missed appointment at $180.

Section 1. Situation

One paragraph, in the client's words, on why they need this now.

Harbor Lane Dental's 12 clinics book about 4,800 appointments a month, and 9% (about 432) are missed. At an average of $180 each, missed appointments cost about $77,760 a month in revenue the clinics have already staffed for.

Section 2. Objectives

The business outcomes the client wants. Write results the client will see. Weiss's example objective is turnover below industry averages, which is an outcome a board can check.

1. Reduce the missed-appointment rate from 9% to 6% across all 12 clinics.
2. Give each clinic manager a weekly view of missed appointments by provider and time slot.

Section 3. Measures of success

How both sides will know each objective is met. Use a number the client already tracks, so nobody argues about the scoreboard later.

1. Missed appointments as a share of booked appointments, from the practice management system, reported monthly and compared with the prior three months.
2. A weekly report in use at all 12 clinics by week 8.

Section 4. Value

What reaching the objectives is worth to the client. Use the client's own figures from the call, and show your arithmetic.

Cutting missed appointments from 432 to 288 a month recovers 144 appointments. At $180 each, that is $25,920 a month, or about $311,000 a year, before counting the staff time spent rebooking.

The value-based pricing guide goes deeper on getting these numbers from the client rather than inventing them.

Section 5. Approach and options

How you will do the work, offered as two or three options. Each option must meet every objective, and the higher ones add something the client values beyond extra weeks. Weiss is blunt that options built only from "more" or "longer" do not impress anyone (Weiss on options).

Option A: Diagnose missed appointments from 12 months of booking data, redesign reminders and the deposit policy, and roll out at all clinics. Option B: Everything in A, plus front-desk training at each clinic and a 90-day check of results with adjustments. Option C: Everything in B, plus six months of on-call advice for Dana and the clinic managers after the project ends.

Section 6. Timing

The elapsed time for each option, with a start date tied to signature.

Option A: 8 weeks. Option B: 8 weeks, plus a results check 90 days after rollout. Option C: the same as B, plus six months of advice starting when the project ends.

Section 7. Joint accountabilities

What each side provides. This is where you name the things that would otherwise quietly stall the project.

Priya provides the analysis, the redesigned process and weekly updates. Harbor Lane provides export access to the practice management system in week 1, a named contact at each clinic, and replies to questions within two business days.

Section 8. Fees and terms

The fee for each option, how it is paid and how expenses work. Weiss's newsletter puts the fee for every option in this section.

Option A: $24,000. Option B: $38,000. Option C: $38,000 plus $3,000 a month for six months ($56,000 total). Half of the project fee is due on signature and half 45 days later. Travel to clinics is billed at cost.

Section 9. Acceptance

A line for the client to pick an option and sign.

To proceed, choose Option A, B or C, sign below, and the kickoff call will be scheduled within five business days.

The whole thing fits on about two and a half pages. Notice what is missing: no history of Priya's firm, no team bios and no 14-step methodology diagram. Dana met Priya on the call; she does not need a brochure.

3. Price the work three ways in your head, then put options on the page

There are three common ways to set the fee, plus hourly billing, which we cover separately in consultant hourly rates. Here is how they compare.

Fixed fee. You quote one price for the project. The reader question that opens the Maister thread suggests estimating the project's length with the client and then setting a fixed price instead of billing by the hour. A fixed fee protects the client from a running meter, so the scope section has to protect you.

Value-based fee. You price against the value in section 4, not your hours. In the made-up example, Option A costs $24,000 against about $311,000 a year of recovered revenue, roughly a 13 to 1 return in the first year. A ratio like that makes Dana's decision easier. The price is a judgment call; there is no formula that turns value into a fee, only a check that the fee looks small beside it.

Retainer. The client pays monthly for access to you. Jonathan Stark defines his retainers as subscription access to his advice through an agreed channel with agreed response times, and says they did not include prepaid hours or writing production code. Write those boundaries into the proposal, or the retainer becomes a second project at a discount. Weiss lists offering a retainer after the project ends as one way to build a richer option (Weiss on options), which is what Option C does.

Our recommendation: present two or three options, each with a fixed fee, priced with the value in section 4 in mind. The client's question shifts from "should we hire her?" to "which one?", which is a much better question for you.

4. Send it fast, then walk through it on a call

Send the proposal within a day or two of the discovery call, while the numbers are fresh in the client's head. Then book 20 minutes to walk through it together, so you hear objections live instead of reading silence in your inbox.

If the client asks for changes, change the option, not the price of the same option. Dropping $6,000 off Option B with nothing removed teaches the client that your first number was a guess.

5. Skip this template for formal RFPs, and get a lawyer for the contract terms

This format fits a private client who invited you after a conversation. It does not fit a formal request for proposal, where the buyer sets the format and compares responses side by side. The Bureau of Labor Statistics describes that common route for management consultants: organizations ask several firms for proposals covering method, schedule and cost, then pick the best fit for their needs and budget. In that case, follow their format exactly. The request for proposal guide covers that process from the buyer's side.

A signed proposal can become part of a binding agreement. This article is not legal advice. For anything with real money, liability, intellectual property or confidentiality questions, have a lawyer review your terms, and write the detailed scope in a separate document such as a statement of work.

6. When the hard part is understanding the client's industry, talk to someone who works in it

Sections 1 and 4 depend on knowing what the problem costs and what a realistic improvement looks like. If you are proposing into an industry you have not worked in, a few short conversations with people who run that function elsewhere will sharpen your numbers before the client sees them. On Instant Expert you can invite specific operators and practitioners to a short call or a written or voice answer, and you pay only if someone books or answers. You can also browse operations consultants and pricing strategy consultants if you want a second opinion on your approach or your fee.

If you are still working out what to sell, start with how to become a consultant. If you already have a prospect, book the discovery call before you open this template, and do not write a word until you can fill in the value section from your notes.