No matter what line of business you’re in, it’s safe to say we all want to have that winning proposal that beats out the competition and lands a new account or work order. But in between every winning proposal you submit, you’ll have some proposals that will simply not make the cut. Such proposals will not be considered beyond the first round of review, lose the prospect’s attention or do not qualify for a variety of reasons. At the end of the day, all you know is your business was not chosen for services and your proposal was, for all intents and purposes, dismissed or passed over.
Five common reasons for losing a proposal include:
- Lack of “big picture” … too strong a focus on tactical issues
If your proposal focuses too strongly on tactical tasks but lacks a cohesive, strategic vision tying everything together, you may lose the prospect. Prospects want to be sure you can not only do the job but also have enough strategic insight to connect the dots well beyond any set of individual tasks. - Lack of understanding of prospect’s business or business needs
Be sure you make an effort to understand the prospect’s industry and competitive landscape. Learn what industry acronyms or lingo mean. Ask questions about their target and vertical markets. Every prospect has unique business needs; use the proposal as the document to demonstrate your knowledge of your prospect’s business and customer climate. - Negative perception or seen as lacking knowledge or experience
A vendor recently submitted a proposal for Drupal web development but spelled Drupal as “Droople” throughout their entire document. I was told the prospect saw this typo and immediately deep-sixed the vendor’s proposal. “If they can’t even spell the name of the technology accurately, how will I know if they even know what they’re talking about?” said the prospect. This tale highlights how important it is to do simple things such as spell check for accuracy. The last thing you want is to disqualify yourself over something this easy to remedy. - Third-party partnership presents unknown risks
I recently learned from a prospect that one of the proposals they recently dismissed for a project came in from Company X who admitted they had no experience in the technologies required for the project. Company X, the prospect shared, also indicated they would outsource the technical development to a third-party they often work with on such projects but offered very little information about the subcontractor. According to the prospect, this caused too much uncertainty and risk; so much so that Company X’s proposal was removed from the pile of proposals to be considered.If you are partnering with any third party, highlight the strengths of that partnership in detail. What makes the partnership such a success? Showcase a relevant case study or two that positions the partnership as an asset. The goal is to reassure the prospect that the partnership in question is one with a proven track record of success with strong, measurable results. - Budget or cost implications
More often than not, the prospect’s budget (or lack thereof) is a very significant factor that is beyond most vendors’ control. Whenever possible, ask about budget capabilities or limitations beforehand. It is easier to predetermine what can be done (or not) if you have some general dollar figure to work with. Moreover, provide some viable options. Use your proposal to address the prospect’s budget figure but offer one or two other cost options for reference. This will help the prospect to better determine how they will proceed and your initiative for providing this additional cost information will be helpful and appreciated.
Ultimately, you want your proposal to demonstrate your company’s acumen and skill, extensive knowledge and record of success. While you’ll always face some competition when it comes to proposals, it’s up to you to make the effort to stand out from the pile of other prospective vendors seeking the same project work as your firm. By steering clear of the pitfalls shared above, your proposal will have a better chance of being read and your organization will be viewed as a serious contender worthy of strong consideration.
Mayra Ruiz is a blogger, marketing consultant and founder of Ruiz McPherson Communications, a Web technologies and digital marketing service based in Charles Town, West Virginia. With more than 15 years of hands-on marketing, communications and PR experience, Mayra leads her clients forward on all aspects of creative direction, online promotion and marketing communications with innovation, passion and skill. She can be reached on Twitter at www.twitter.com/mayraruiz or via her practice account www.twitter.com/ruizmcpherson.
Image by Flickr user Striatic (Creative Commons)
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