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This newsletter series will give you insights and techniques to help you build a better business no matter how large or small yours is. I always say that success comes from working on your business as opposed to in your business. I want to share with you the systems and philosophies that have been successful for me over the years.
This is newsletter #34 in the series. If you have missed prior newsletters, and are enjoying the series, we encourage you to purchase the program. More information can be found by clicking on the coupon at the bottom of this page.
After you’ve completed the bid, you must submit a written proposal that clarifies what your bid includes and what is not included. If your proposal is clearly written, and states the agreed upon terms and conditions, it’s likely to be signed. At that point, you can consider the signed proposal a legal and binding contract.
Whenever you prepare a proposal, make sure it’s delivered to the individual who is authorized to take action on it. Giving a proposal to a receptionist or secretary is a waste of time. If the prospect is sincerely interested in your company as a prospective contractor, they’ll schedule the time to meet and give you and your proposal personal attention. Using others to deliver proposals could send the message that they're not important! A proposal personally hand-delivered by the company owner implies the opposite. Perhaps the best salesman is the person who stands to gain the most—the company president.
Don’t waste time on price shoppers. While it's reasonable to request prices from at least three contractors, price shopping might include some collusion where your price will be revealed when asking if another contractor can do better, and there will almost always be someone desperate enough to low-ball your price. If you do manage to get a job from them, you probably won’t be able to make a reasonable profit, and you won’t establish a permanent relationship because they’ll dump you whenever someone underbids you.
Knowing what is said and what is not said in your major competitors’ proposals and contracts can be used to your tactical advantage. Intelligence gathering and counter-intelligence is not limited to governments. Business is war! The more you know about the strengths and weaknesses of your opponent, the more likely you are to improve your own firm, and not lose money bidding against firms you can’t beat. The performance of brand-X can be used as a benchmark for your own firm—somewhat like the time to beat! Don’t be afraid to ask for information from the contractor if you aren’t awarded a project. Sometimes just the follow up will result in another opportunity to get work.
A sample proposal to use as a guideline can be found here. Proposals should be designed to protect you and the consumer. Take the time to design your proposal to achieve that purpose.
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The above content is extracted from Mike Holt's Business Management Skills Program.
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