The Preliminary Proposal:  Needs Analysis

A preliminary proposal is actually a proposal, short, simple, and easy to understand, that delivers what we've promised:  a solution to a business problem.  A business problem may be a product (i.e., a slow copier that jams paper),  service (i.e., a lack of expertise),  or a business process (i.e., redesigning how a company handles orders and fulfills customer service requests).  The most successful salespeople deliver value and vision.  Ways to ad value can be time related, such as delivering up-to-date product information, concept related (helping a prospect do something unrelated to what they want from you), process-time related (how the prospect interacts with your company to save them time), and gift related (buying lunch or hosting a golf tournament).  Where salespeople win is when they add a vision and deliver what they promise - this leads to becoming reliable and trusted business partners.  In order to write a preliminary proposal; however, it is highly useful to complete a thorough NEEDS ANALYSIS.

Needs analysis is a critical activity required to write a scope of work.  When we met the prospect they offered various problems regarding their business.  Perhaps, their existing vendor wasn't meeting demands for a product or service our company offers, which is why they wanted to meet with us.  But we also uncovered a hidden need - one the prospect hadn't yet identified, which would enable us to offer a proposal where the prospect would be considerably less likely to go out to bid as it would be our own unique solution.  I always try to position deals where I have as few true competitors as possible, as this increases the likelihood of a win.  

Bringing in the experts.  Once we've identified the need, we then must bring in our experts on the matter.  We must involve them as early as possible, so that timelines do not get away from us.  Experts focus on the solution - the feasibility, cost, ROI (return on investment to the prospect), implementation, and on-going business matters.  My experts also help me clarify my vision of the solution and provide sanity checks to eliminate holes the prospect mind uncover.  They determine a range for our pricing, too.  

The complete preliminary proposal includes:

    a.  Cover letter

    b.  Table of contents

    c.  Executive overview (no more than 1 page)

    d.  Scope of work

    e.  Pricing (terms & conditions ONLY - enables prospect to identify contract/legal issues)

    f.  Company Overview (may be boiler - but keep less than 5 pages)

    g.  Detail section identifying key element infrastructure support or product review.

    h.  Appendices (I usually save delivery of some of these for the FINAL proposal)

             1.  Annual report or Company financials (if positive and/or requested)

             2.  Related press releases OR brochures

             3.  Other collateral

             4.  References (sometimes, I'll put references IMMEDIATELY AFTER the executive overview - I do this when the reference is sufficiently high-level AND would be someone who the executives at the prospect would recognize.)

In order to uncover needs, we must utilize the right questions during our meetings with prospects.  The best questioning methodology I've seen is from David Rubinstein, Founder of Sell Like Hell Sales System (SellLikeHell.com).  

David's approach recommends utilizing specific how, what, and why questions in order to lead the buyer to "yes" response - therefore, eliminating the fear of closing.  I strongly recommend him.  

Whatever methodology you utilize, make sure you follow it and track results.  Winging it on your sales call - especially when determining needs, is a surefire way to get beaten by a competitor.

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