By Nancy Fox
We've all experienced it: the elation of having the prospective client request a proposal as quickly as possible only to have it languish in the land of unreturned follow-up phone calls.
What is really going on with these prospects anyway? How do we as professionals avoid the dilemma of the dangling proposal, and increase our proposal approval ratios?
To get to the solution we have to look behind the curtain, and see what the driving forces are around the requests for proposal.
For the purposes of this piece, we will focus primarily on one company's specific request for a proposal from your firm or company vs. the cattle-call RFP (I'd recommend staying away from those as much as possible anyway).
What is prompting the prospect to request a proposal in the first place? The usual assumption is they are moving one step closer to doing business with you and will buy once they see your offer, both in terms of service content and fees. The first error here is that this is only an assumption.
It takes zero effort for a company to request a proposal of anyone. Companies know that in almost 100% of the cases, if they request a proposal, they will receive one. What is their liability in this request? Zero. They have everything to gain (information) and nothing to lose.
We, on the other hand, have only a moderate potential gain (50-50) and a lot to lose. According to the professionals I've surveyed, the minimum amount of time invested in a decently crafted proposal is 2-3 hours. Multiply that by the hourly rate of the professional composing this document and you can see how costly this document really is. But that is a minimum investment. In many cases, developing a well-honed proposal is an important marketing tool that requires careful consideration and maybe several people's participation. The cost multiplies quickly.
All of this investment could be well worth it - if the prospective client is ready, willing, and able to engage or buy now and your offer will be a profitable engagement for you.
But what if the prospect is just kicking tires, information gathering, using your proposal to improve his fees with his current professional or vendor? What if the prospective client thinks he's ready, but can't pull the trigger because change is too uncomfortable? What if you've drafted a proposal and didn't realize you didn't address the prospect's REAL desires?
All of this could lead to the dreaded dangling proposal.
What to do?
The real solution lies in what happens BEFORE you ever submit the proposal.
The real solution lies in you controlling if,when, and how you submit a proposal.
The real solution lies in you asking all the right questions BEFORE you agree to submit a proposal.
What are the right questions to ask?
Here are 10 essential (although not necessarily easy) questions to ask that will certainly illuminate the seriousness, the readiness, and intent behind your prospect's interest in working with you. Will asking all of them eliminate the dangling proposal? Unlikely; but you will most certainly decrease your danglers by a hefty percentage.
You can control your business instead of allowing prospects to leave you feeling like you are a hamster on a wheel, running after that piece of fruit you can never quite reach.
10 Essential Questions To Ask Before You Start Writing That Proposal
1. What is prompting you to request a proposal at this time?
2. What elements do you expect and need to see in the proposal in order to make the right decision for your company?
3. What don't you want to see in the proposal?
4. If all of the elements in our proposal meet your needs, will you be ready to sign off on it immediately? What is your urgency level?
5. Are there any obstacles to our working together that we should know about before we prepare our proposal?
6. If all obstacles are addressed, will you be ready to move forward with us at this time? What other decisions would you need to make first?
7. To whom should we submit the proposal? Who should be copied on the proposal? Who will need to sign off on the proposal? Is there anyone else who will need to approve this? (This is a key question. You need to drill as deeply as possible here because very often the requester of the proposal is not the decision maker, and doesn't want to be transparent about this)
8. Are you requesting proposals from any other candidates at this time? (I know - you don't want to ask this question, but it is a frequent source of the dangling proposal dilemma)
9. How will you make your final decision?
10. Are there any remaining concerns on your mind that we should know about? (If you were in the prospect's shoes, wouldn't you appreciate a professional asking you about addressing your concerns?)
Listen carefully to the answers to these questions and don't attempt to convince or sell the prospect. Then, if they really appear to be ready, proceed with proposal development.
If you get a sense there is hesitation or uncertainty or lack of true commitment to working together, you may need another meeting to deepen the trust and the relationship.
You have the power to decide if and when you want to invest in developing a proposal and go to the next level with your prospect.
Nancy Fox is President of The Business Fox, specializing in coaching and advising lawyers, accountants, coaches, and entrepreneurs in attracting ideal high-paying clients. She has worked with hundreds of high-level people in building thriving client relationships and playing their top game in business. Receive her complimentary newsletter, The Business Fox Bulletin, for business and client-building tips, and her free two-part Special Report, Network Like A Fox: 7 Surefire Ways to Attract Ideal Prospects, Win Ideal High-Paying Clients by visiting her website or writing to her at nancy@thebusinessfox.com.
We've all experienced it: the elation of having the prospective client request a proposal as quickly as possible only to have it languish in the land of unreturned follow-up phone calls.
What is really going on with these prospects anyway? How do we as professionals avoid the dilemma of the dangling proposal, and increase our proposal approval ratios?
To get to the solution we have to look behind the curtain, and see what the driving forces are around the requests for proposal.
For the purposes of this piece, we will focus primarily on one company's specific request for a proposal from your firm or company vs. the cattle-call RFP (I'd recommend staying away from those as much as possible anyway).
What is prompting the prospect to request a proposal in the first place? The usual assumption is they are moving one step closer to doing business with you and will buy once they see your offer, both in terms of service content and fees. The first error here is that this is only an assumption.
It takes zero effort for a company to request a proposal of anyone. Companies know that in almost 100% of the cases, if they request a proposal, they will receive one. What is their liability in this request? Zero. They have everything to gain (information) and nothing to lose.
We, on the other hand, have only a moderate potential gain (50-50) and a lot to lose. According to the professionals I've surveyed, the minimum amount of time invested in a decently crafted proposal is 2-3 hours. Multiply that by the hourly rate of the professional composing this document and you can see how costly this document really is. But that is a minimum investment. In many cases, developing a well-honed proposal is an important marketing tool that requires careful consideration and maybe several people's participation. The cost multiplies quickly.
All of this investment could be well worth it - if the prospective client is ready, willing, and able to engage or buy now and your offer will be a profitable engagement for you.
But what if the prospect is just kicking tires, information gathering, using your proposal to improve his fees with his current professional or vendor? What if the prospective client thinks he's ready, but can't pull the trigger because change is too uncomfortable? What if you've drafted a proposal and didn't realize you didn't address the prospect's REAL desires?
All of this could lead to the dreaded dangling proposal.
What to do?
The real solution lies in what happens BEFORE you ever submit the proposal.
The real solution lies in you controlling if,when, and how you submit a proposal.
The real solution lies in you asking all the right questions BEFORE you agree to submit a proposal.
What are the right questions to ask?
Here are 10 essential (although not necessarily easy) questions to ask that will certainly illuminate the seriousness, the readiness, and intent behind your prospect's interest in working with you. Will asking all of them eliminate the dangling proposal? Unlikely; but you will most certainly decrease your danglers by a hefty percentage.
You can control your business instead of allowing prospects to leave you feeling like you are a hamster on a wheel, running after that piece of fruit you can never quite reach.
10 Essential Questions To Ask Before You Start Writing That Proposal
1. What is prompting you to request a proposal at this time?
2. What elements do you expect and need to see in the proposal in order to make the right decision for your company?
3. What don't you want to see in the proposal?
4. If all of the elements in our proposal meet your needs, will you be ready to sign off on it immediately? What is your urgency level?
5. Are there any obstacles to our working together that we should know about before we prepare our proposal?
6. If all obstacles are addressed, will you be ready to move forward with us at this time? What other decisions would you need to make first?
7. To whom should we submit the proposal? Who should be copied on the proposal? Who will need to sign off on the proposal? Is there anyone else who will need to approve this? (This is a key question. You need to drill as deeply as possible here because very often the requester of the proposal is not the decision maker, and doesn't want to be transparent about this)
8. Are you requesting proposals from any other candidates at this time? (I know - you don't want to ask this question, but it is a frequent source of the dangling proposal dilemma)
9. How will you make your final decision?
10. Are there any remaining concerns on your mind that we should know about? (If you were in the prospect's shoes, wouldn't you appreciate a professional asking you about addressing your concerns?)
Listen carefully to the answers to these questions and don't attempt to convince or sell the prospect. Then, if they really appear to be ready, proceed with proposal development.
If you get a sense there is hesitation or uncertainty or lack of true commitment to working together, you may need another meeting to deepen the trust and the relationship.
You have the power to decide if and when you want to invest in developing a proposal and go to the next level with your prospect.
Nancy Fox is President of The Business Fox, specializing in coaching and advising lawyers, accountants, coaches, and entrepreneurs in attracting ideal high-paying clients. She has worked with hundreds of high-level people in building thriving client relationships and playing their top game in business. Receive her complimentary newsletter, The Business Fox Bulletin, for business and client-building tips, and her free two-part Special Report, Network Like A Fox: 7 Surefire Ways to Attract Ideal Prospects, Win Ideal High-Paying Clients by visiting her website or writing to her at nancy@thebusinessfox.com.