do, how they work, and how you write one – drawing from the best practices that bid and proposal professionals use worldwide.
In the broadest sense, business proposals are formal, written offers by businesses or individuals to perform work on the behalf of other businesses, government entities, or other individuals. Proposals set out in clear, concise language what you’ll do for a customer, how you’ll do it, how much it will cost, and the business benefits the customer will realize after the work is done. Proposals aim to both inform and persuade. And that makes them pretty unique.
In some industries, business proposals are precursors to contracts. That’s why many proposals stipulate how long certain offers or prices are valid. Some government entities require the proposals they receive to be authorized by a bidder’s officer to underscore their legal status. Some proposals even become an integral part of the final contract.
❯❯ Proposals submitted further to a formal request from the customer: These are sometimes referred to as solicited proposals. You may also hear them called reactive proposals, because you can’t really anticipate all their requirements. More often, these proposals are called RFP responses, because the customer issues a Request for Proposal. We opt for that term throughout this book.
❯❯ Proposals that you give the customer independently of any request: These usually follow deep discussions about the customer’s business needs and are called either proactive or unsolicited proposals. Instead of the customer requesting a proposal, you ask the customer to accept your proposal. We prefer the term proactive because it indicates that you write these on your own initiative (plus, it’s easier to say).
Both types consist of a series of textual and visual components that form an argument in support of your approach to solving a customer’s problem.
In the following sections, we discuss the differences between RFP responses and proactive proposals – their structures and some of the rules around writing them – and then discuss the reasons why organizations issue RFPs.
Looking at the differences between RFP responses and proactive proposals
Before we go any further, we cover how you construct RFP responses and proactive proposals and why they’re different.
Turn to Chapter 2 to find out more about the similarities and differences between RFP responses and proactive proposals.
Understanding the structure of RFP responses
RFPs are the procurement method of choice for most governments and large organizations. Most RFPs, regardless of the source, have similar structures. Government RFPs have elaborate number schemes and consistent, required sections. Commercial RFPs may have these as well, but the formats and sequences can vary widely from industry to industry and from RFP to RFP.
Though RFPs can have many surface differences, most contain individual sections that do the following:
❯❯ Describe the background of the customer and its business problem.
❯❯ Lay out the rules that the customer expects all bidders to follow, including any terms and conditions of a potential contract.
❯❯ List the specific requirements that the customer needs you to address as you solve the problem. These requirements often take the form of questions. They may cover not only how your solution will work but also how your company will implement and manage the solution.
❯❯ Specify pricing components (usually in separate spreadsheets, depending on the complexity of the project).
Many RFPs instruct you to include in your response an executive summary, which you need to do whether instructed to or not (unless the RFP explicitly forbids you to). As you see in Chapter 9, an executive summary is your best chance to explain your solution and its value to the customer’s highest ranking decision maker (who won’t normally read the entire proposal). You never want to miss out on the opportunity to communicate directly to a customer’s leaders.
Understanding the structure of proactive proposals
Proactive proposals, more or less, also follow a standard structure. The difference is that with proactive proposals, you control the structure, although you should always use a structure that customers find comfortable, satisfying, and compelling. The standard sections include
❯❯ An executive summary that recaps needs and benefits, win themes, and value propositions in language that speaks to decision makers
❯❯ A description and illustration of the current environment or problem
❯❯ Your recommendation for creating a new, improved environment or for solving the problem, comparably illustrated to show the changes in the customer’s world
❯❯ A statement of work that describes how you’ll set up the solution and maintain it
❯❯ A pricing summary that focuses on benefits, value, and return on investment
❯❯ A final recap of benefits and an action close to outline next steps
Adjusting your process for RFP responses and proactive proposals
High-level differences exist between RFP responses and proactive proposals that involve how you adhere to the rules, work with time frames, and handle the competitive landscape.
PLAYING BY THE RULES
