Tag Archives: proposal

Sales , , Leave a comment

The Unexpected RFP

by

Have you ever received an RFP out of the blue? I’ve received two and I was gullible enough to respond to both and both times I received exactly what I deserved—nada!  Really,  I should have known better.   An RFP that slips into your mail box is a Trojan horse.  In fact,  I received a phone call this morning from an unknown person who claimed that she was looking for corporate trainers  (or some such)  and wants to include me in the search,  so I am about to receive unexpected RFP #3.

In reality,  what this dame and other stealth RFP senders often want is to round out a list of candidates in accordance with their company directives,  to make it easier for them to hire who they’ve already planned to hire.  Or,  the game is to either get the job done at the lowest price,  or free consulting advice through a fake RFP.

I was caught in what I suspect was the latter game a couple of years ago by a Harvard University-run charity,  no less.  They were looking for ways to juice their fundraising strategy and invited me in to talk for an hour.  I suspect that either no one was hired,  or the person hired was pre-determined and may have been given my ideas  (and maybe also the ideas of other suckers)  to implement,  along with my pricing info as a benchmark.

Whatever the motive,  beware the out-of-the-blue RFP.  The targeted Freelance consultants gain nothing but false hope and the  “opportunity”  to sally forth on a fool’s errand.   However,  I’ve decided that if  this latest RFP is sent  ( I provided my email address),  I will respond—my way.   I will telephone the contact person and ask a few questions…..

The first question I’ll ask is,  who referred me?  The second question I’ll ask is,  who is performing that job now?  The third question,  what is motivating the change if someone is already doing that job,  whether in-house or a Freelancer? Is that person doing an unsatisfactory job and in what ways?  I shall listen very carefully to the replies.

If the answers do not add up,   I will decline the RFP and politely state that I don’t get why I’ve been invited to apply,  that I typically respond to RFPs from clients with whom I have a relationship,  after we’ve discussed project objectives.

On the other hand,  if the answers to my first three questions pass muster,  I will ask three more:

1).   Who is the project decision-maker and the stakeholders and may I meet with them?

2).   What information will the perfect RFP for this project contain?

3).    How will success for this project be measured and who holds the yardstick?

Nevertheless,  while meeting is helpful,  it is not a fail-safe.   My fake RFPs both included a face-to-face.  If you are invited to come in and speak about the project,  do so without submitting a proposal.  Give them nothing beyond an hour of your time.

If the company insists on wheedling information out of you  “What would you do in this situation…?”,  tell them you’ll be happy to discuss that going forward if it looks like you should work together.  Put nothing into writing.  If recipes to solve a problem are required beforehand,  know that it’s an RFP shake-down.

RFPs are awarded by clients with whom we have a relationship and even then,  you might not win.  Three years ago,  I brought a program concept to a decision-maker at a not-for-profit.  During a $40.00  lunch that I paid for,  I was invited to write a proposal.

Bingo! I said,  but it was not to be.   After more consideration,  it was determined that the staffing needed to support my proposed program was not available and there was no budget to hire.  I believe that the intent was not to screw me,  but I was devastated and it still stings.

So what should you do if an unsolicited RFP comes your way? Proceed with caution,  ask questions to help reveal the sender’s motives,  listen carefully to the answers and whatever you decide,  do not get your hopes up.

Thanks for reading,

Kim

Business Strategy , , , , , , 1 Comment

Your Big Client Bid Strategy

by

Freelance consultants have to be nimble and resourceful in order to compete successfully and that is especially so when in pursuit of a big-league client.  Winning a big client is tremendous validation,  but when swimming with whales it is essential to take precautions and maintain as much control over the process as possible.   It would be disastrous to do what is second nature to many small business operators and Freelancers: whatever it takes to get the job in and whatever it takes to get the job done.   Pursuing important clients with big contracts out for bid takes a more sophisticated approach.

When assessing and pricing a big  contract,  the project fee attached to your proposal carries much weight,  in more ways than one.   Bid too high and you’re knocked out of contention.   Bid too low,  a common practice of Freelance consultants and small business owners,  and one of two impressions will be made:

1.   That you are perhaps unqualified to do the work because you’re selling your services for too little money,  or

2.   That you’re desperate for business and probably ripe for exploitation.

To both convey the image of a capable and experienced professional and ensure that you make money on the project,  be sure that you thoroughly understand what will be required to fulfill the contract and your ability to do so.   Job costing and cash flow projections will need special care.   Will you need extra expertise for some aspect of this job,  or perhaps an extra pair of hands in order to meet the timetable? 

Realize that big projects for big clients mean big accounts receivable and there can be a downside.   Be honest about how much money you can afford to have outstanding,  even if  payments are received on time.   Help yourself by requesting 20% – 35% of the project fee up-front and due within 15 days of the contract signing.   Set up a payment schedule in your proposal that ensures you’ll be able to pay any subcontractors and also yourself on time.

Freelancers and small business owners often compete on price,  but one is advised to avoid dangerously low bids in order to get work or add a marquis name to the client list,  only to receive very little profit from the project.   Michael MacMillan,  founder and CEO of MacMillan Communications of New York City,  focuses on selling personal attention and customized PR strategies to his clients and providing more bang for the buck.   “One of the advantages of being a smaller organization is that you’re more efficient because there are fewer overhead costs.  We are able to apply more of the project fee directly to account work”. 

According to Jeffrey Bolton,  managing partner at the accounting firm Daszkal Bolton LLP of Boca Raton, FL,  the key to evaluating whether to pursue a big client is to ask yourself  how important that account will be for future business growth and whether the project work fits into your strategic plan,  even if you don’t make money on it.  “If you’re trying to build a reputation,  that foot in the door is necessary,  but you must have an institutional mind-set when taking on a big client and not a mom-and-pop mind-set”.

Thanks for reading,

Kim

Business Strategy , Leave a comment

Protect Your Intellectual Property

by

Suppose you decide to do what I recently did and contact the managing partner of a consulting firm and propose that the two entities agree to explore the possibility of  forming a business alliance that just might become very profitable? Business is all about deal-making and every once in a while a Freelancer has to pitch a good proposal to the right prospect.  After all,  nothing ventured,  nothing gained.

But there is risk involved,  usually for the smaller entity.  Freelancers typically offer intangible services,  better known as intellectual property.  We trade on our expertise and judgment,  our brand and reputation,  that which distinguishes us from the pack and allows us to make a  living.

Engaging in a business alliance or joint venture usually involves the sharing of intellectual property by one or both of the parties  (in this case,  it would be me).  How can you protect yourself from unscrupulous operators who might decide to appropriate your valuable IP,  when you’re out there trying to be proactive and proposing potential business deals to parties that might be interested,  without getting ripped off  for the fruits of your ingenuity?

Denver attorney Susan F. Fisher defines intellectual property or trade secrets as  “any formula,  method,  or information that gives you a competitive advantage…anything that takes time,  money or effort to develop and that you don’t want potential competitors to know about.”  Most business alliances,  including licensing arrangements,  require a Freelancer or business owner to reveal trade secrets and other IP.

Protecting the coin of your realm is a top priority.  Surprisingly,  that can mostly be achieved by taking just a few simple steps that cost no money at all.  Step one is to identify your intellectual property or trade secrets as restricted material and therefore not available for general distribution.  Mark the material “Confidential” in big bold typescript.  Step two is to require a special password to access the document file,  to provide yet another level of security.

A third IP security measure is to unambiguously state in a letter,  or in the email to which the file of IP information is attached,  that said information is proprietary and confidential and that it is being provided as part of a business proposition in which you would like to be paid,  should the proposal come to fruition.

Instituting such safeguards not only protects IP,  but also demonstrates to lawyers,  judges and juries that you identified your IP as confidential and not for general distribution,  that you made it known that the information you shared was sensitive and that you intended and attempted to protect your IP,  should a dispute ever lead to litigation.

The ultimate level of security is to require that the party with whom you share IP sign a nondisclosure agreement.  The NDA provides formal legal protection of  your IP and trade secrets.  Furthermore,   the NDA specifies what information is considered proprietary and what is not and will also describe limits as to how the IP may be used and for how long the information must remain confidential.  In the NDA,  your attorney should request that all copies of confidential information that detail the ingredients of your  “secret sauce”  be returned to you at the end of that term.

So by all means,  be an enterprising Freelancer and pitch a good idea to the right decision-maker.  Just be sure to start the venture off on the right foot by taking a couple of no-cost steps to protect your interests.  I’ll let you know how things turn out with my idea.   I was invited to call the managing partner in early December to find out if he and his colleagues feel that we have something to discuss.

Thanks for reading,

Kim

Marketing , , , , Leave a comment

What Consulting Companies Know

by

There are certain similarities between consulting companies and Freelancers.  The firms work on a project basis, as we do. They submit proposals and compete for clients, as we do.  Like us, the firm’s consultant comes to the client’s organization as a hired gun, takes on the assignment, produces the deliverables and gets paid.  The similarities seem to end there, however.

The fact is,  consulting companies get a lot more respect and a lot more money than Freelancers.  The consulting company’s value-added is perceived as more valuable than the Freelancer’s value-added.  Most clients have a great deal of trust and confidence in consulting companies (well, at least the person who hired them does).  As a result,  consulting companies are awarded the most lucrative projects.  Their calls and emails are always returned.

Likewise,  Freelancers who have worked for consulting companies are held in higher regard by clients and prospects.  Anecdotal evidence leads me to believe that they receive more lucrative contracts,  billing more hours and commanding a higher rate. Freelancers with a consulting company background appear to know a secret code,  know all the right moves.  I came to realize my knowledge gap through a series of casual meetings with an acquaintance of mine named Erika.

Erika once worked for a mid-size consulting company,  first in their LA office,  then in NYC.  Like me,  she facilitates strategy meetings in the for-profit and nonprofit sectors,  but we cannot call each other competitors.  Erika stands head and shoulders above me in terms of consulting savoir-faire and client list.  Next to her,  I am the country cousin!  Erika is a very cool girl and over time she took pity on my poor, untutored self and shared a few consulting company secrets.

Primarily,  the advantage gained from consulting company experience is that one learns how to build value into all client interactions.  The perception of adding value starts with the very first client meeting.  A consultant’s job is to deliver comprehensive,  data driven analysis,  insights and answers that produce the desired results. Those analyses,  answers and insights form the basis of the strategies that the client will be advised to implement,  so that key goals and objectives will be reached.

Erika lets it be known that she will deliver the goods.  In the client meeting,  she asks questions that reveal what the client wants and help her discover what the client needs–that information forms the essence of Erika’s value-added.  Next,  she confirms with the client that she’s accurately grasped the project scope and understands all priorities and timetables.  She follows up in writing and in fact boasts that she does not so much submit proposals as send confirmation letters.

Erika isn’t awarded every assignment she’s invited to discuss,  but her track record is very good.  Before she starts work on a project,  she also takes a few important actions to keep her value-added rolling:

I.  Recognize,  and if possible meet,  the organization’s senior management team: the CEO, ED and other key staff.  Their names and sometimes also photos are probably listed on the company website.

II.  Learn the thought process that led to the project’s initiation and approval.  If possible,  read the project proposal and review any preliminary work that may have been done.  Find out who supports the project and who opposes it if you are able, to learn who your friends and detractors will be.

III. Know the organizations’ basic financial data.  Read the most recent annual report and examine the P & L to learn the annual operating budget,  total annual revenue,  gross profits,  profit margin and operating margin.

IV.  Know your client’s top five competitors: key products and services,  annual operating budget,  total annual revenue and gross profits.  Know what differentiates each main competitor from your client and know each main competitor’s strengths and weaknesses.

V.   For nonprofit organization clients, know which agencies within a 10-20 mile radius deliver similar services or compete for a similar constituency.  Know where and how those agencies offer services that complement or compete with your client’s mission.

VI.   Cultivate good relationships with your project sponsor and other key project supporters.  Identify a couple of good restaurants near your client’s geography and invite your sponsor and/or those with whom you work most closely out for coffee or lunch,  as applicable.

VII.  Become a resource for useful information to your client.  Sign up for Google Alerts and stay current with industry news and competitor’s activities.  If an item looks particularly intriguing or urgent,  send the link to the right people.  This practice can continue after project completion,  as can the above strategy, to extend relationship building and value-added.  Your objective is to entice the client to engage you for repeat business and to refer you to others.

Thanks for reading,
Kim