Wednesday, 06 January 2010 15:43

Effective Formal Proposals

Written by Jose Gil
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Following on from my "Effective Articles" and "Effective Short Letter Proposal" this article I will address effective formal proposals (greater than 5 pages) that is especially used when you are engaging a new or potential customer or the opportunity can not be easily covered by the short letter proposal.

Formal Proposal (Greater than 5 pages)

A formal proposal is a full proposal that covers the core elements of Problem, Solution and Value (Effective Articles) in greater detail. The framework outlined below is a typical example of a formal proposal. Keep in mind that this is only a general framework and you will need to adapt it to the sales situation. Do not feel compelled to cover each of the categories, especially if the sale doesn't warrant that much detail.

Typical sections of a formal proposal include:

  • Cover or Title Page - This should include the title of the proposal, date and your name, address and phone number. Adding the customer's logo can be a nice personal touch. Also include any reference numbers especially if responding to a Request for Proposal (RFP) or Request for Tender (RFT).
  • Table of Contents - Include a table of contents if the proposal contains more than 10 pages.
  • Executive Summary - An executive summary should not be more than 2 pages long with the purpose of giving a busy executive an overview of the proposal outlining the key points. It is up to the executive if they wish to get more details to read the complete proposal but they should be able to make a decision from the Executive Summary without reading the rest of the proposal. The Executive Summary is normally written after the proposal is completed, as you will have all the facts to effectively consolidate all the information into two pages.
  • Introduction - Outline why the proposal was developed. Was it in response to a meeting or phone call? It is also recommended that your summarise the objectives of why you are writing the proposal and what it is suppose to achieve.
  • Requirements - Detail the customer's problems or needs that need to be addressed by the proposal which you derived during the meeting with your customer. Demonstrate that you understand your customer's requirements and problems, as it will give your customer the impression that you have listened and that you are interested in their business and its requirements.
  • Proposed Solution - Detail the solution that addresses the customer's requirements or needs. Explain clearly and in an objective way how your solution will solve the problems described in the previous section. It is critical that you present you solution or product in line with the customer's requirements. Focus only on the features and benefits that address the customer's requirements and do not spend time on those that don't. Emphasising features and benefits that the customer will not use will only detract the proposal from it purpose of addressing your customer's needs.
  • Cost / Value - Detail the cost of the solution to address the requirements (problems / needs) of the customer. It is also important to outline the value of implementing the product or solution to the customer. Inform them how it is going to save them money, improve productivity and/or improve efficiency. The biggest mistake you can make is to assume that the customer knows the value or can work it out himself or herself.
  • Implementation plan and schedule - Project your confidence that the customer will naturally say "YES" today by setting up a specific schedule with actual calendar dates for installing the product or beginning the implementation of the service. Use real dates as it will give the customer a clear indication when you can start and when they expect the engagement to be finished. This adds credibility to your proposal and your organisation, as you are willing to commit to the customer on solving their requirements.
  • Commercial Agreement - Provide a section that allows the customer to sign off and accept your proposal. Ensure the details, pricing and commitments are included on the sign off page to simplify the process for the customer.

Appendices to the proposal

Keep the proposal lean and to the point. This is achieved by putting any backup material in appendices giving the customer the opportunity to read them if they desire.

  • Terms and Conditions - Provide the terms and conditions for the commercial agreement.
  • Capabilities / Staffing / Qualifications - If you are selling professional services demonstrate that your company has the capabilities, the staff and their qualifications to effectively deliver what is proposed.
  • Testimonials / References - If appropriate include names of organisations and contact names of people that have used your products or services. This increases the credibility of your organisation and the products and services you deliver. Always remember to ask any listed organisations if they can be listed and are happy to be a reference for your organisation.
  • Additional Technical Details - Make any appropriate technical brochures or details available so the customer can read them if they desire.

I hope this article has helped you achieve more sales and I would like to hear you comments. Good luck and good hunting.

Last modified on Wednesday, 06 January 2010 15:47
Jose Gil

Jose Gil

For many years Jose Gil has been delivering personal development training and coaching to individuals all over the world.  His student's success is his success.

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