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A Request for Proposal (RFP) either creates excitement or incites panic – the reaction depends entirely on whether or not you and your team know how to respond.

Sure – proposals are mixed blessings. You get short–listed to bid – hurray! Now, lucky you, you get to spend copious quantities of time and resources developing a response, dropping most of the other high–priority projects you’re currently working on, only to find, perhaps, that it was all for naught if you lose. At which point somebody in your organization (maybe even you) will inevitably say, “Are these things really worth it?”.

The answer is yes – or no – because all RFPs are not created equal. Rule of thumb: if you think you’ve got a good shot, you probably do, so go for it. If you don’t, it’s decision time. Run the numbers. Is the volume of business worth it? Assess the competition. Do you stack up against them? If the only reason you think you might not have a great chance of winning is simply because you’re not well known to the prospect, this could be the ideal opportunity to introduce your business, and show it off in the best possible light. And though you might not win, you might just cement your chances of being short–listed as a known contender for other important opportunities. On the other hand if you really can’t compete then responding may just be a great way to highlight that fact – and who needs that?

If the strategic decision is ‘go’ then give your business the best possible chances at a win and steer clear of the mistakes that sideswipe so many well–intentioned responses:

1. “Pick me! Pick me!”
This proposal focuses on all the countless reasons why the prospect should choose your firm. You’re so this, so that – great, except the RFP isn’t about YOU. It’s about what the prospect wants and needs and how your business will deliver the best possible solution.

2. You Did It Your Way
It’s fair to say there are some pretty horrific RFPs out there with ambiguous questions and poorly designed formats that make presenting your business in the manner you’d like next to impossible. The temptation is to improve things (a.k.a. make things easier for you) by setting up your response the ’right’ way. Bad move – you just took the short cut to elimination by a) not respecting the prospect’s request and b) creating a situation where it will be impossible to evaluate your proposal relative to the others received.

3. Fill–in–the–Blank
Ah – the proposal template. A quick search–and–replace and it’s out the door – and straight to the circular file. Your prospect will choose a respondent that effectively communicates a clear understanding of needs and a solution designed specifically to meet those needs, not a generic, one–size–fits–all solution.

Successful proposals fall into two categories: those that create an opportunity or solve a problem more efficiently or cost effectively than a prospect could do themselves. Communicate clearly what will be delivered, the benefits that will result and the price involved. Showcase your unique value proposition. If you haven’t mastered the process, get the outside expertise you need to give you the edge – 5th Business supports clients on a regular basis with our Smarter Marketing approach to winning RFPs.
Win or lose, find out why. Refine every pitch accordingly, then track your progress and watch your closing ratios improve!


© 2005 5th Business Management Practice Inc.
www.5th Business.com