NFIB

Maximize Your Chances When Responding to an RFP, Part II
03/ 22/ 2002


Last week's Workshop discussed ways to maximize your chances for selection from among other candidates when responding to an RFP (Request for Proposal).It also discussed how to avoid getting into a situation that could prove extremely time consuming and costly, both before and after the selection. In today's Workshop, contributor Jeffrey Moses continues with his tips on this topic that is so vital for many independent businesses.

Definition: An RFP (Request for Proposal) is an offering by a company asking suppliers to put out bids either for a specific project, for a contract to supply work over a designated period, or for products. Included may be proposed products or services, proposed budgets and specific costs, fees, time schedules, etc.

Frequently, companies put out an RFP for products or services even when they are completely happy with their present supplier and don't have the slightest intention of replacing them. Companies do this for several reasons:

1) The company may want to keep the current supplier on its toes, and by putting out an RFP (even though they know they won't hire any of the suppliers making presentations) the company serves notice to its present supplier that nothing lasts forever, so work harder.

2) A company may just want to bring in a few new, free ideas for its present supplier.

3) Sometimes a company simply needs to put out an RFP once in awhile, even though it has no intention of replacing its current supplier. Many government agencies, for instance, are required to put out RFPs annually or lose their budget, even though they may have the same supplier for a job year after year. Each of these scenarios make answering an RFP a complete waste of time for outside suppliers. Therefore, before becoming involved in an RFP, ask what supplier currently is working with the company. Ask if the company is happy with their current supplier, and ask why (or if)the supplier is being replaced. With a little research you can usually find out how long the current supplier has been working with the company. If you smell something fishy, don't spend time and resources on preparing a proposal.

If you determine that a company really is going to replace its current supplier, find out why the company isn't pleased with what the supplier was doing. This could help you in your presentation.

Make sure that the company isn't planning on routinely putting out another RFP in a year, meaning that you will have to compete all over again with other suppliers to re-win the job. Sure, you may have the inside track, but you'll have all the aggravation and expense all over again.

When you decide to tackle an RFP, approach it head on. Based on the budget and how much you can make from winning the contract, spend as much time as appropriate to design a proposal that will be creative, innovative, practical, and targeted directly to the company asking for the proposal. Remember, you may be in competition with suppliers who are spending an enormous amount of time preparing their proposal so you'll need to pull out the stops and do everything you can think of to win the interest of the representatives viewing the presentations.

Perhaps the most effective tip from the previous point is to make the presentation targeted to the needs of the company. Take surveys, do market research, interview company executives and staff (if possible and applicable),study the company's business plan and annual report, talk with the company's accountants, and when possible even talk with former or present suppliers to the company. Going the extra mile in your presentation(s) will help your company stand out.

There is an art to writing proposals and making presentations, but it is an art that definitely can be learned. The books listed below can help. Visit any of the online booksellers for a wide choice of books in these topics. Just type in 'business presentations' or 'business proposals.'

1) Writing Winning Business Proposals: Your Guide to Landing the Client, Making the Sale, Persuading the Boss, by Richard C. Freed, Shervin Freed(Contributor), Joseph D. Romano, Joe Romano (Contributor) , about $15

2) Handbook for Writing Proposals, by Robert J. Hamper, L. Sue Baugh, about $15

3) Persuasive Business Proposals: Writing to Win Customers, Clients, and Contracts, by Tom Sant, about $18

4) Making Successful Presentations: A Self-Teaching Guide, by Terry C. Smith, about $17

5) Wooing & Winning Business: The Foolproof Formula for Making Persuasive Business Presentations, by Spring As her, Wicke Chambres, Wicke Chambers, about $14

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