Preparation is everything, especially when it comes to proposals. An ideal proposal starts with a clear articulation of what the other party needs, describes what a good outcome will look like, and concludes with a compelling offer. Sounds simple. And it can be, if you follow these four steps.
Needs: Starting out with a clear understanding of what the other party really needs is critical. Always arrange for a pre-meeting or, at the very least, a call to share information and to help you build the right proposal. Use the opportunity to question, listen, and probe deeper to really understand their priorities, both from a business angle and from a personal angle.
Principles: Your principles describe what “a good outcome” should look like for both sides (e.g. the deal must be profitable for both of us). They should be tabled and agreed during your initial fact-finding conversation, and repeated in your proposal. They are non-negotiable, so will need to be simple, reasonable and common-sense, but strong enough to refer back to if the negotiation becomes competitive.
Offer: Your offer should be simply worded, financially straightforward, and in three sections: if you do those things, we can do these things, and the benefit to you will be this. To construct your offer, first identify the elements on which you’re going to trade (e.g. price, visibility etc.), and particularly those elements that the two parties value differently. Next set the three key numbers for each element, evaluating how much your opening offer will make for you and critically, make for them.
Conversation: To prepare for the discussion itself, first create the narrative – the story that takes you from their needs to your offer. Next, anticipate all the challenges they’re likely to throw at you and prepare your responses . Finally, decide which of the numbers in your offer you’re prepared to move on, by how much and in return for what.
BOTTOM LINE: Never incentivise your team on the number of proposals they make, but on the profit they create. A dozen rushed, “blind” proposals will land less business at lower margin than just three or four that are well researched and prepared.