One of the most common questions proposal managers encounter is “should we respond to this request for proposal?”
It appears that this question is more often encountered in smaller organizations, as they have to make hard decisions when it comes to allocating resources in the RFP response process. In contrast, larger organizations have their own RFP departments. Today we’re going to focus mostly on the individual or small vendors and the ideal approach for them in such situations.
The short answer to the question above is “it depends”. To be more specific, aside from the size of the organization, it depends on the overall request for proposal requirements, the risk of not getting the RFP award, its size, as well as many other factors.
One of the most important aspects which determine if a request for proposal is worth responding to is having an efficient workflow. As previously stated, in order to create a proper RFP response process, you should take into account all stages of putting it together. This means starting with the moment the proposal triggers that “let’s do it!” reaction all the way to when you are finally ready to send it to your potential customers.
This efficient workflow is all about checking things meticulously using a comprehensive checklist. This helps to streamline the entire RFP response process and raise the likelihood of getting where you plan to.
Let’s take a few minutes and discuss a few of the most important factors one should take into consideration when evaluating a request for proposal.
3 factors to help you decide if a request for proposal (RFP) is worth responding to
1. Is it the right fit for your business?
An RFP is clearly a great opportunity for your business, but you shouldn’t accept it just for the sake of doing it. If, in the past, you have done business with a company with the same profile, take a first look at past success metrics. If the data points out to a poor fit and accepting the RFP looks more like a long shot, our recommendation is to have a cautious approach.
Start by asking yourself some questions like:
- Do I know enough about the niche?
- Do I know enough about what the company needs and the challenges it faces, but also how to solve them?
- Does this company fall into my target market?
2. Relationship
Moving on, one more factor that you should consider when analyzing a request for proposal is your relationship with the prospect. This can have a powerful influence on the success of the submitted RFP.
If this relationship exists for some time and, even better, it’s one built on trust, you will be able to better detect the sense of the prospect’s needs and timelines. This also gives you the possibility to ask questions which can clarify everything.
In order to figure out the status of your relationship with your prospect, here are a few questions you should consider asking yourself:
- Have we done any successful business with this organization until date?
- Will responding to the RFP give me access to further collaborations with them in the future?
- Do I get access to key contacts, to get more information?