This morning I had the pleasure of attending the first audio conference
from Alan
Weiss. I read Alan's first book, Getting
Started In Consulting about a year ago. In my business, it was
life-changing. I am now reading another one of his books, Million Dollar Consulting: the Professional's Guide to Growing a
Practice. The following are my notes from the conference.
Although this is a summary found in both books, I highly suggest you
read his books. There is an incredible wealth of knowledge available
in each book. I have found his writing to be witty, informative, and
very relative to a variety of industries. He is an amazing individual
who has achieved incredible wealth and success by keeping his processes
simple and focusing on the tangible.
Alan will be beginning a new teleconference series beginning in
January. I plan on signing up. Please visit his web site if
you are interested in learning more about Alan on the teleconference
series.
A proposal should be submitted AFTER conceptual agreement with the
customer.
The following should be agreed upon prior to submitting a proposal.
– objectives: what it is that you plan to accomplish
– metrics: identify that you are achieving success
– value to the customer: increase in market share, improved to the
bottom line, better public image, etc.
Possible questions to ask during the interview process. (identify
the economic buyer)
Is there a budget?
How important is this need?
What is your timing to accomplish?
Who needs it?
How soon are you willing to begin?
Have you made a commitment to proceed?
What is your criteria in choosing a resource?
Will you do it again?
Are you already seeking a formal proposal?
Reiteration – YOU MUST WORK DIRECTLY WITH THE ECONOMIC BUYER
Steps to a Good Proposal
1) Situation Appraisal: one or two paragraphs that identify WHY you are
submitting this proposal.
2) Objectives: bullet points of what specific business outcomes will be
achieved. (not deliverables)
3) Metrics: Our Measures for Success Will Include….
4) Value to the Customer: bullet points, improved customer
satisfaction, less stress, etc. (must be agreeable by the customer)
Don't put in exact numbers unless they are based on historical details.
Stay conservative.
5) Methodology & Options: Providing a list of options will turbo charge
the success rate of the proposal. Explain how (simply) you will arrive
at the end result (focus groups, feasibility study, etc.) and provide a
list of value-based options. Each option should be with increased
value. Do not be afraid to offer options that are above the client's
budget, so long as there is escalating value.
6) Timing: Provide an estimate with relative dates (3-5 weeks, will
start in 30 days, etc.). You cannot control internal issues that will
delay the project.
7) Joint Accountabilities: List what the client, you, and both parties
are responsible for.
8) Terms & Conditions: The first place where fees are mentioned. 50%
payment up front (to cover expenses and ensure client investment) and
the balance due within 45 days. 10% off for full payment in advance.
Explain that the quality of the work is guaranteed. (not the results)
9) Acceptance: Your signature indicates acceptance. Please indicate
the options requested. Sign both copies in advance. In lieu of your
signature, your deposit may also indicate acceptance.
If you aren't sure you have the economic buyer, ask these
questions.
1. who's budget will support this project?
2. who can approve the project?
3. who will people look for as the project leader?
4. who controls the resources?
5. who asked for it?
6. who will claim responsibility?
7. who is the champion?
8. who else's approval is needed?
9. who will accept/reject this project?
10. if we shake hands now, can we start tomorrow?
How to further identify the value to the prospect.
1. what is the ideal outcome?
2. what results are you trying to accomplish?
3. what better service/product, etc. are you seeking?
4. why are you seeking to do this work?
5. how would the operation be different?
6. what would be the return on investment?
7. how would your image be improved?
8. what harm would be alleviated?
9. how much would you gain on the competition?
10. how would your value proposition be improved?
Submitting a proposal
1. Establish the follow-up date in the cover letter.
2. Make sure the proposal is FLAWLESS.
3. Refer back to their conceptual agreement
4. Keep it brief
5. Provide two copies
6. Make sure it looks good
7. Enclose something of value – an article, web site, etc.
8. Use hard copies, not electronic
If your proposal is rejected
1. Don't walk away angry. Ask permission to stay in touch. Thank them
for their time and attention.
2. Ask for what the cause was for their decision.
3. Make an offer for informal assistance.
4. Mail something of value within 30 days. Send something to them
every 60 days. Do not attempt to regain the lost project.
5. Call the buyer around 90-120 days and ask a question, “Has the
material I have been sending appropriate? Should I alter it? How has
the project gone? I'll be in the neighborhood in X days. Would you
care to get together for a cup of coffee?”
6. Keep the buyer up to date on what you have been doing. Show them
how your experience and expertise have grown.