Writing Business Proposals that Double Your Income
Many service businesses write quotes or proposals for work ... it is the main way that they gain business. Yet too many of them are not making the most of their proposals. They either create a new one from scratch each time, or just throw something together and wonder why they are not getting the work.
If you want to increase your conversion rate (and charge what you are really worth), you need to pay attention to the proposals you put together for potential clients.
Your business proposals are "your business in print". They demonstrate, in print form, what it will be like to work with your business, what people can expect from you and the quality of the work you will do for them. You need to take the time to craft a business proposal that is a true reflection of your business and the value you add to clients.
In answer to the question of "how to write a proposal", each proposal needs to show how you understand the needs of the client. Your client has to be able to see that you "get" the brief, their unique needs and concerns, and you are able to meet their needs.
A quick tip here, people are looking for outcomes not features or processes. By that I mean "testing and tagging electrical cords" is a process – "guaranteeing the electrical safety of your workplace by protecting clients and staff from unsafe electrical appliances" is an outcome.
People buy experiences and outcomes and are willing to pay a premium for the privilege – otherwise why would people spend money on fine dining when McDonalds also provides food that fills a hungry stomach. The clearer you can articulate outcomes, the more effective your proposal will be and the higher the fees you will attract.
Your business proposal needs to demonstrate your credibility and your expertise. You can do this through including short case studies of successes, testimonials and past client lists. You want to demonstrate to your potential client that you have a massive track record of success behind you and you are experienced in working in their type of industry.
People also want to know how you will work with them – what the steps will be at each phase of the process. There is a story in advertising that the first company to talk in detail about how their scotch was distilled with pure mountain water (something that lots of people did but never mentioned in their marketing), took market share as a result.
When you are articulating how you will work with the potential client, make sure that you answer any common complaints about your industry. If your industry has a reputation for not turning up on time, then make sure you guarantee to turn up on time, every time.
You can also include a section in your business proposal that will help your potential client understand how else you can serve them and what other services you offer. Always remember to do the first sell with one eye on the second and third sale.
Of course, your proposal needs to include detailed information about the quotation. In providing the quotation, remember to reinforce your understanding of the project and specifically all the value that you will add to their business.
When you get to the issue of price or fee, there is a whole raft of ways to help reduce "sticker shock". You can look at how much per day that works out to be, look at the cost of a lost client, or provide external credible evidence of the average cost of your service or product.
However, if you have clearly demonstrated the value that you will add, your expertise and credibility and the process you will follow, you are 90% of the way to reducing any challenge to your fees.
One last point, remember to lay out your proposal well, and include professional graphics and design elements. The look of your proposal is an important element in giving the right impression about your business.
And how long should a business proposal be? As long as it takes to effectively cover all of these areas. (To give you an idea, my business proposals are eighteen A4 pages long and my conversion rate from proposal to new client is 92%.)
If you could convert 50% more business proposals into clients, what would be the impact on your business?
If you introduce a new product, service or project, you need to also introduce new accountabilities into your team. Accountabilities have three parts to them:
1) Clearly defining the task/role and the expected level of performance.
2) Regularly tracking progress against the target over time.
3) Reviewing and enhancing the process by which the task/role is done.
Unless you have all three parts covered, the new product, service or project won't be done consistently and will not be improved over time. If you want to build accountability, then tick off all three parts with your team.
Designed for real world managers, they take you through the process of setting performance goals and objectives, and then walk you, step by step through how to review performance.
These guides are accompanied by a series of MP3 training sessions, available for immediate download, to train you in each aspect of performance review - from how to prepare for a review, through to what to do if an employee gets emotional during a review.
This week I attended the ultimate "unconference". In this post I share a little about the process as well as some observations about people and how they choose to engage in debate.
Legal stuff: This newsletter is intended as only a general guideline for Australian businesses. You should seek specific advice for your situation rather than relying only on this newsletter
Earnings disclaimer. Some of the content may include advertorial information, which means I may receive financial compensation for the products I recommend. But - unless I know and trust the product, I will not recommend it.
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Your business proposal needs to demonstrate your credibility and your expertise. You can do this through including short case studies of successes, testimonials and past client lists. You want to demonstrate to your potential client that you have a massive track record of success behind you and you are experienced in working in their type of industry.
