Client’s appreciate having all the necessary information before making a purchase, therefore issuing a business quote or business quotation can make a big difference in swaying that final decision. Business quotes will create a more direct line of communication between you and your clients, as well as offer your business added protection. 

Additionally, you may also be interested in free invoice templates for once your business deal successfully goes through. 

What is a Small Business Quote? 

A small business quote is a document created by the seller, for the purpose of showing a client the cost of a sale before a purchase is made. The quote will help a client (or potential client) make a decision as to whether they want to proceed with the sale or not. 

Once a business quote is issued to the client, the seller must honour the price quote. However, he does have the option to put a time limit on the offer, for example there could be a “valid for 30 days” line listed on the document. The seller also reserves the right to state that if any additional services or items are required for the project, then the price of the quote will reflect the changes. 

In addition to the overall cost of service, the seller can list other costs associated with the sale, these include: 

• Sales Tax
• Costs for raw materials
• Labour 
• Duration of service 
• Number of goods 
• Other factors contributing to the final price 

Why Should Companies Use Business Quotes?

Whether you are a service-based business or sell products to order, a business quote will offer an accurate and profitable price along with a multitude of other benefits to you and your customers. 

When your company uses accurate and concise quotations it creates a clear line of communication between both parties, and this has the power to sway clients into making a purchase. Since the sales quote states the final cost, along with a breakdown of all the associated costs, your client will gain a better understanding of what they are paying for. So instead of the client thinking they are being overcharged, they will be able to see the true value of where their money is going. 

As a business owner, you already know that keeping on top of cash flow is a top priority. Although this might prove challenging because the future is hard to predict, a business quote that has been signed off on will help you do just that. The quote will allow you to forecast cash flow, profits, and perform time tracking, so you can accurately invest in the resources you need. 

Finally, having a signed quote will help ensure that you get paid. Unfortunately, cases of clients agreeing to payment and then disappearing from sight, do occur. Therefore, it’s important to protect your business by having signed written evidence that the customer already agreed to pay. 

7 Steps to Creating a Business Quote Template

Incorporate these 7 steps to ensure you have professional and attractive business quotations prepared for your client.

1. Brand your document 

Business quotes are an extension of your business, and should therefore be branded with the same features. Add your logo, colour scheme, fonts, and anything else that represents your business. This will give your quotation template a more professional feel, and will show the prospective customer you put more effort into the small details. 

2. Add client information

Be sure to address your client directly in the quote, this will give the document a more personal touch and make the client feel valued. It is also important for the recipient to know who the document is for. In cases where the quote is being sent to a business where there are many people, adding specific client information will help dilute confusion. 

Add the following details: 

• Client’s Personal name 
• Client’s business (if applicable)
• The specific department within the business (if applicable) 
• Client’s phone number
• Client’s address
• Client’s email address 

3. Include product or service details

After adding client information, provide a detailed and itemised list of all the products or services that your client is interested in – you will want to be as specific as possible in this section.   

If your clients is interested in products, include: 

• The exact product or products they are interested in 
• The quantity of each product they are purchasing 
• A description of the product (for example: if the product is a computer, add the specs of that computer) 

If your client is interested in services, include:

• The exact service or services they are interested in
• How many times they want each service performed 
• A description of the service (for example: if they are looking for an installation, include the amount of hours/days it will take, the equipment involved etc) 

If you have a bigger project at hand – in order to keep everything organized – you should separate labour and material descriptions. And in cases where you are selling products along with services, you may choose to create separate quotes, or create separate sections within the same quote. 

4. Enter quoted prices

Enter the quoted price of each item or service individually, then add up each individual line item for the subtotal. After the subtotal, add any discounts that you and your client may have discussed. And finally, add your taxes and show the grand total at the bottom.

5. Insert important dates

The dates listed on your business quote will keep you and your client clear on the expected timeline. Some important dates to include are: 

• Issue date: This is the day you send your client the invoice 
• Expiry date: This will be the day the offer expires (if the amount you came to is not a fixed price)
• Payment due date: Here you will state when you expect to receive payment for your product or service. If you expect multiple payments, you can set a payment due date for each individual payment.
• Delivery date: This refers to when products are expected to be delivered to the client
• Project start date: If a client is purchasing a service, this will be the date the service will begin
• Project end date: Here you will put down when a project is expected to be completed by

6. Add terms and conditions

This section of the quote will tie up any loose ends. There is always a chance for unexpected variables to occur, and you need to make sure that both parties are aware of what will happen in case they. 

In this section you can include:

• Late payments: What will happen if your client misses or refuses to make a payment 
• Disclaimers: This includes what will happen if any unforeseeable circumstances that alter the original agreed upon terms occur. For example, if you own a construction company and changes in weather will delay the projected timeline or if shipping delays will effect when a client receives his product
• Extra charges: If a client decides to add any products or services after the quote has been signed, it’s important to note that they will incur additional charges 
• Payment terms: This has everything to do with how you would like to be paid. From payment methods (direct deposit, debit, credit, cheque etc) to whether you need an upfront payment, one lump sum, or broken down payment instalments.

7. Include any additional information or notes

Here you can add any additional information that you would like your client to know. This may include future offers, seasonal or referral discounts they can qualify for, the scope of the project, or a thank you note to remind them they are a valuable client and that you appreciate their business.

Using QuickBooks Online invoicing software is a simpler, more efficient way to create a professional quote template and estimates to attract potential customers. Try it today.