By John Doerr, Contributing Editor
Recently, I had a conversation with a client who was struggling with his business development efforts. The conversation went something like this:
Me: So, how has your selling effort been going?
Client: Unbelievable. I sent out four proposals last week and three more this week.
Me: That's great. How many new deals have you closed?
Client: Well, er…none. But, I've sent out sixteen proposals in the last six weeks. If I close just one deal…I will have…just…one...deal…in the last two months.
Me: Okay. You think maybe it is time to rethink your approach to sending out proposals?
Client: Maybe…once I finish writing these next two.
Perhaps this conversation is a little exaggerated. But I venture that many a professional service provider has fallen into the trap of equating proposal activity with sales activity. We are so anxious to show some momentum in our business development efforts that we jump at the slightest opportunity to send out a proposal. In the end, for a great deal of hard work, we end up with no deals, no new clients, and no new revenue.
To give you a chance to rethink your approach to proposals, I present three common scenarios for you and some questions and thoughts to help you decide how to best approach each one.
The Too Early, Too Soon Trap
Scenario: You've just had an initial sales call with a prospect, during which you've learned some useful things about the company and the issues it is facing. The call is going well and the prospect appears interested, but it's not clear he knows just what he's looking for.
You only had an hour for the call and could really use another hour to ask some more questions.
Just as the call ends, the prospect says, "Could you send me a proposal?"
What should you do?
In spite of the request from the prospect, you really don't have enough information to spend a number of hours writing a proposal. In situations like these, consider the following:
- You have a much better chance of writing a winning proposal if you take the time to set up a second conversation. Don't get "hijacked" into sending a speculative proposal before you really understand the prospect and their needs. Ask yourself, "Will I just be throwing things against the wall, or will I really be writing a compelling solution to their needs?"
- Whenever possible, a proposal should formalize what has already been agreed upon. During any subsequent discussions or meetings, be certain that the solution you are about to spend hours crafting is describing the future as the prospect also sees it.
- If you absolutely, positively must send something because the prospect "demands" it, try sending a letter of understanding (without mentioning fees). In this letter:
- Summarize your understanding of the situation;
- Outline one or more possible solutions; and
- Suggest a next step (usually a meeting to discuss the details of the letter).
The Lure Of The RFP
Scenario: You're going through your mail and open an official-looking envelope. It's an RFP from a Fortune 500 company with which you've never worked, but you would love to have them as a client.
The RFP is 50 pages long but, for all its length, it is not very specific about the underlying issues the company is trying to address. You estimate the RFP would require 5 person-days to complete.
What should you do?
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