The Preliminary Proposal

What it is.  The reason I do a preliminary proposal is because it enables me to make sure I am quoting the right product or service my prospective customer needs.  This is a confirmation to our needs analysis of the prospect's problem.

The preliminary proposal allows us the opportunity to close without being obvious about it.  Fact is, when you've reviewed what they want then when they get the price all you have to do if focus on the negotiating aspect of price - if I'm certain my price is acceptable, the prospect has already bought into the program without ever needing to be "closed" by being pushy or aggressive.  I strongly believe in avoiding traditional aggressive closing techniques and being more soft in my approach to closing. 

What it looks like.  There are several components to the Preliminary Proposal.  Most of mine include the following:

1.  Objective.  What is the goal?  What will the proposal achieve?  These must be answered clearly and simply.

2.  Strategy.  How will we meet the objective?  Several lines (or in the event the proposal is longer, several paragraphs) should be sufficient to define the basics that we know what we're doing.  What makes us unique?

3.  Scope of work.  This is the basics of the scope of work.  The scope of work is the beef of the proposal.  Objective is what, strategy is how, tactics are the implementation schedule of who, what, when of the operations of the solution.  Actions should be assigned to objectives.   I like Tom Sant's ideas around ghosting and differentiation here, too.

4.  Implementation schedule.  As part of the Scope of Work or as an attachment, the implementation schedule enables the prospect to see that you know how you're going to deliver and you'll have a schedule to follow to enable them to see you're on target.  This builds trust in doing business together.

5.  Results.  Instead of just telling, show the prospect we'll deliver.  We offer proof of how our plan will result in direct benefits to resolving their challenge(s).  We can also offer client testimony of similar solutions as references.  Knowing they can call someone else to see how we've implemented our solution elsewhere can be useful to helping build confidence, too.  

6.  Why?  The final closing comment asks for the prospect's business and offers an additional statement or two addressing both logical and emotional reasons for making this decision to choose us TODAY. 

I'm a big believe in using action words and words that convey doing business NOW.  So, by using the word NOW, TODAY, and IMMEDIATELY, we plant subliminal types of messages that create urgency.  The power of subliminal words is very, very strong.  So, why not use it?

Tom Sant, of SantCorp, suggests the following additional ideas for building successful proposals:

1. Never title your proposal "Proposal". 

 

2. Focus on your client's business needs or mission objectives first.

Most people start with their company history or an overview of their

capabilities, strengths, or advantages.

 

Put the customers needs right up front in the Executive Summary, mirroring what

 you have heard from them before you offer a solution. That shows you have listened and considered their interests and are not offering a canned approach. It's a great technique to build trust and lower anxiety.

 

3. Avoid lengthy corporate histories. Nobody really cares. And no matter

what, don't start your proposal with your company history, your mission

statement, or your corporate vision. If you include any of that stuff, put

it at the back of the proposal, not up front.

 

4. Keep your proposal as short as possible. Think thin to win. It's

tempting to throw in anything and everything that might be of interest,

but the decision maker probably won't read it. All you've done is create so

much clutter, the decision maker can't find your key points. Also, a short

proposal will usually be read first, which means all others will be judged

in comparison to it. That's an advantage if you've done a good job.

 

5. Eliminate jargon. Make your proposal simple and easy. Avoid using

your own jargon unless you are absolutely certain everyone involved in the

decision process will understand it. Ask yourself: even if your contact at

the client organization understands all of your jargon, who else will read

the proposal? Will they understand it? In fact, the only jargon you should

use throughout your proposal is theirs.

 

6. Highlight your key points. Executives don't read, they skim. Use bullets, headings and subheadings, bold face type, color, bullet points, borders, and anything else that will make your key points jump off the page.

 

7. Prioritize your differentiators or competitive advantages. Think

about what you have to offer and select a few of them, prioritized in terms of

what matters the most to the customer.

 

8. Ghost the competition. If you know which competitors are also in the

deal, raise issues in your proposal that strike at their weak points.

Don't disparage them or mention them by name. But if you know they have a lousy safety record, make a big deal about the importance of safety and how

great your record is.

 

9. Quantify your benefits and payback. Quantified benefits are more

convincing than generalities. Calculate the total cost of ownership, the

return on investment, the potential value of improved productivity. Show

the benefits graphically, in a comparison chart. If you can base the

customer's positive outcomes on the things that differentiate you, you'll

really have a powerful value proposition.

 

10. Ask for the business. Ask for it in the cover letter, ask for it in

the Executive Summary, and ask for it when you present the proposal. Being

passive doesn't work. You have to ask.

 

(Above information copyright SantCorp 2000.  Please contact  tomsant@santcorp.com for further information regarding SantCorp's proposal services.  All rights reserved.)

See similar articles in Business Aspiration

See What's New