Business proposals and business plans are two entirely different documents. As discussed in this guide, a business proposal is a document outlining products and services relevant to a potential client. It encourages a prospective customer to enter into a business arrangement with your company.On the other hand, a business plan is a formal document outlining your business's overall strategy for success. This document, which businesses typically develop in the initial stages of incorporating a company, will include various details and plans, including budgets, business license information, potential funding arrangements, market research, projected revenue figures, and more.