Business proposals and marriage proposals invite comparison. Both want to reduce the risk of rejection; both are binding agreements that (hopefully) set the stage for lasting relationships. Make them personal, plan and research, pick the right moment, identify needs and expectations, make the offer irresistible, discuss finances, include an “end” clause (prenuptial) if things don’t work out as planned – then seal the deal.
Companies spend large sums of money to create savvy sales tools, yet these same companies don’t treat business proposals with the same finesse. A business proposal is one of the most important deal-closing tools you can generate. It’s all about persuading a prospect to progress from interest to signature. Realistically, not every prospect will say “I do” for a variety of reasons, but here are some things that can stack the odds in your favor for a long, beneficial engagement:
Remember three guiding principles
- Orient everything you write around the prospect, citing their hot buttons: pain, needs, issues, and motivators. Use “you,” “your,” or the prospect’s company name more often than you use “we,” “our,” or your own company’s name, otherwise you’ll sound self-absorbed. The proposal isn’t about you.
- Use language to your advantage so the wording is clear, concise, and easy to read. Don’t mask the content with jargon, clichés, industry-specific terms, or overused catchphrases.
- Pepper the proposal with benefits and successful outcomes, not features.
Open with a loud and proud testimonial
Prospects don’t pay for deliverables; they pay for results. Begin with a focus on solving key problems the prospect currently has or may anticipate. One way is with a brief, compelling testimonial. The following is an example of how a facilities management company prevented a disaster and large financial loss for a client. This lets the prospect know the kind of superior service they can expect:
One Thanksgiving holiday season – a few days before Black Friday — our flagship store was forced to close because of severe flooding. We were in a panic because it’s the busiest shopping day of the year. ABC Management immediately took charge. They coordinated vendors and worked with city officials to reopen the store with a minimum amount of disrupted business. This was extremely critical to our bottom line. They are truly a valuable and vital part of our team and proved their worth in this event alone. –Sam Banks, CEO, Brookside Apparels
Get to know your prospect
Learn all you can about your prospect and the industry, just as a salesperson would before making a sales call. Do whatever you scrupulously and reasonably can to get the inside scoop such as the decision criteria and decision-makers.
- Request a pre-proposal meeting to understand the core issues. Just like with medicine, you can prescribe the right prescription once you learn the symptoms. (They may not meet with you, but you’ll get high marks for showing that level of interest.)
- Pay attention to the prospect’s business partners, customers, clients, and competitors.
- Scout around your company and your networking sphere. Speak to anyone who may have done business with the prospect or its competitors.
Express your understanding of the prospect’s pain
Why did the prospect ask for a proposal? Too many proposals don’t reiterate the pain adequately, making the prospect feel as if submitters don’t get it.
- Present a clear strategy to solve the prospect’s problem for achieving goals, prioritizing efforts, and measuring progress and quality. (This is the heart of the proposal, and you must tailor it to meet each prospect’s unique needs.)
- Supply sufficient documentation to convince the prospect you have the qualifications, personnel, and capabilities to implement and carry out the strategy. (Avoid banalities such as, “We have a very experienced team of highly qualified people.” That’s totally meaningless because what company is going to say, “We have an inexperienced team of unqualified people”?
- Read between the lines for nuances that can add value. That may include which parts of the business are affected by this problem, what corporate goals aren’t being achieved, what are lost opportunities, etc.
- Suggest possible add-ons so they upsell themselves. (If the decision will be based on price, suggest a three-tier solution giving you the edge over opponents.)
Emphasize your value proposition
Gone are the days of catchy jingles and phrases. Make it transparent why you stand tall above the competition so the prospect will think, “These people have been preparing for years to work with me.”
- Highlight similar projects you or team members have completed – perhaps under budget or ahead of schedule.
- Stress the credentials and talents of people on your team including awards, special recognition, keynote addresses, publications, patents, and such.
- Capitalize on what you offer that your competitors don’t: scientific wizardry, technical approach, project management capabilities, state-of-the-art widgets, etc.
- Stay honest. It’s better to under-promise and over-deliver.
- Explain how to prioritize efforts, not just what to do and how to achieve goals.
- Enable the prospect to assess progress and quality with measurable milestones.
- Ensure that you’ll catch them if or when they get off-track with ample time to make
- corrections.
- Spice it up with testimonials demonstrating your record of success in a similar industry.
Design for visual impact
Visual elements grab your prospect’s attention and communicate information at a glance. When your proposal has strong visual appeal, it attracts attention, invites readership, and establishes your credibility even before you state your case – just as a home must have curb appeal to entice potential buyers to look inside. You add visual impact by using lots of white space; compelling, descriptive headers (one or two points larger); bulleted and numbered lists; paragraphs that are limited to eight lines; charts, tables, and figures; colors where appropriate; and relevant photos.
Attach an engaging executive summary
High-level people often don’t have time to read all the details, yet they may make decisions based on a brief executive summary. Affix the summary to the body of the proposal. Use bullets, tables, and charts (when appropriate) and limit the summary to two to three pages. Make it brimming with critical information that includes the following:
- The prospect’s pain, need, or goal and how you can help achieve them.
- How the project will be managed and by whom.
- How much time will be involved with measurable milestones?
- The total cost with breakdowns of incremental payments.
- Why you’re the most qualified candidate.
- The ROI (return on investment).
Top with a one-page cover letter
The cover letter is your only chance to make a strong first impression, just like reading the dust jacket of a book before committing to reading the entire volume. It should create enough curiosity and interest to encourage the reviewer to read your executive summary followed by your full proposal. Place this letter on top of (but not attached to) the executive summary.
Opening paragraph (about them)
Start with something you admire about the prospect: “What a remarkable year it’s been for [name] as you’ve announced [whatever]. We look forward to becoming part of your team.” Many submitters start with the lackluster opening, “Thank you for giving us the opportunity to . . .” (Save thank you for the end.)
Middle paragraph (why you)
Include three or four bulleted items that make you be the superior candidate. It’s fine to repeat some from the executive summary; just change the wording slightly.
Closing paragraph (call to action)
Don’t end with a thud. Proactively ask for their business by suggesting the next step. Perhaps you’ll call them in two weeks to follow up. Or you ask for a follow-up meeting with suggested dates. End by thanking them for their consideration.
Respond to an RFP
Show the prospect where to find answers to every point that’s requested, in the order in which each is listed; 100 percent compliance is the best way to guard against early elimination in the evaluation process. The following represents the first two items, mirroring the language and sequence in the RFP:
- Vermont registration and licensing in all applicable disciplines. (Pages three to seven).
- Thorough knowledge of procedures, requirements, and practices of Vermont State Board of
Education, School Governance Bureau, and other agencies related to the design and construction of schools. (Pages eight to 19).
Proofread until your eyes hurt
I had a client who received a proposal for a very large project. On the cover page, the submitter spelled the prospect’s company name “Emory” when in fact, it’s spelled “Emery.” The 80-page proposal was dumped in the trash without ever being considered. Even one small error can negate all your efforts; it signals carelessness. Never turn on your computer and turn off your brain.
