A company has selected your organization to be one of a few on a short list to submit a proposal.

The core requirements of a good proposal are covered in the following section of this chapter, but there are two considerations to heed at this juncture in the sales process:

1. Understand the competition. Just as theres such a difference between bad business and good business, there are times to submit proposals and times to abstain. If youre one of 10 firms submitting proposals and lack a strong relationship with the buyer, chances are youve been invited simply for comparative purposes and are wasting your time. Knowing the competitive environment will help to differentiate.

2. When it makes sense, do your homework. I see some proposals and it was as if the vendor had read my mind, says Marc DeCourcey, a Washington, DC-based political consultant who helps clients evaluate and select vendors for government contracts. And I know from having been on the other side of the fence selling services that its because they did their research, talked to everyone in the community who might be helpful, and got as much information as they could from the buyer.

In an ideal situation, fee negotiations and other alterations to the proposal will be completed before the final submission of the document. But ideal situations require that many disparate factors come together neatly and cleanly, and they can be tough to come by. Thus, once the proposal is formally submitted, there is often the need to haggle and make changes. However, even when this situation arises, if business developers work to diligently follow a system-applying judgment when appropriate-each step in the selling process should build on the previous one and result in a firms being in a favorable position to win new business.

Written Proposals

Regardless of specialty, proposals from professional services firms should address five to eight main areas. Proposals typically range from 3 pages to 50 or more, depending on the nature of the work and the size of the proposed engagement. Proposals should be easy to read and error-free, but because this is not always the case, the result is a differentiation opportunity for firms that pay attention to the details.

Executives are partial to delivering hard copy versions of proposals to prospects (and other documents as well). Each interaction with a prospect or client is a marketing event in itself, and delivering hard copies allows firms to demonstrate their professionalism, among other things. But prospects

Exhibit 7.2 The Professional Services Sales Process

often request e-mailed versions of proposals, and though their requests should be honored, that doesnt preclude firms from sending hard copies along as well. Remember that every step along the way to successfully landing a new client is meaningful, and none should be minimized.

Exhibit 7.2 illustrates the key components of a professional services proposal and their respective roles, taking into consideration that the target audience is both individuals closely involved in the vendor selection process, as well as peripheral executives with a vested interest in its outcome, who may not be familiar with your firm. Also, keep in mind that some components illustrated may be extraneous if the sales process has been lengthy and the information has been presented thoroughly in other forums.

To promote user friendliness, longer proposals should contain a table of contents. Almost without fail, prospects immediately flip to the costs section and then make their way through the entire document. Its human nature and unavoidable. As weve discussed, once the proposal has been submitted, there should be no surprises because discussions have occurred along the way, so sticker shock should not be a problem.

Qualifications and References

In the services business, qualifications (including the firms brand, which should play a significant role in the selling process) and references go a long way. They address risk management and can support premium pricing if used effectively. When I was at Goldman Sachs, I was never asked even once by a prospect for a reference. Now that Im out on my own, Ive never landed a new client without being asked to provide references, says one money manager with an Ivy League education.

If youre a graduate of a top-20 law school working at a big firm, that means youll be billing out at $300 per hour during your fifth or sixth year; thats the price the market is willing to pay as its willing to pay $250 per hour for an established art director who consistently generates good advertisements that sell products. The same goes for the hot architect who has designed the latest-and-greatest building in town-premium pricing is justified if the services are presented and sold effectively.

As a professional services business developer, using qualifications and references in the selling process is a fundamental technique. These aspects of the firm should be promoted throughout the entire selling process and incorporated into proposals as necessary.

Presenting Qualifications and Clients. Qualifications include anything about your organization and its staff that is relevant to the buyer(s), may persuade the buyers decision to hire your organization, and/or establish common ground with him or her for future discussions (e.g., alma maters), including: