Question

When you first receive a Request for Proposals (RFP), what three sections should you look at to determine if you are going to respond?

Answer 1

Fit

Consider whether this opportunity is the right fit for your business. If you have done business with a similar company, take a deeper look at past success metrics. If the data indicates that it’s a poor fit and it seems like a long shot, approach with caution.

Questions to ask yourself:

• Do I know enough about the industry?
• Do I know enough about their needs and challenges, and how to solve them?
• Do they fall into my organization’s target market?
• What has my past success rate been for similar companies and industries?

Relationship and Timing

The stage of the sales cycle in which an RFP is received can dictate how you want to proceed. For example, if a tech company has already done a demo and is nearly halfway through the sales cycle with the prospect, the chance for consideration is high. If you have never worked with the company and the RFP is your first touchpoint (also known as a “blind RFP”), your chances for consideration might be lower.

Questions to ask yourself:

• What stage of the sales cycle is the RFP received?
• Have we done business with this organization in the past?
• Will responding give me access to further business down the line?
• Do I have access to key contacts to get more information

Competitor Language

Watch out for competitor language in the RFP. You might notice references to specific product features or terminology that a competitor is known for; this could be a sign of a predetermined choice by the prospect or even competitor involvement in creating the requirements.

Timeframes and Internal Resources

Another factor to consider is the deadline and the amount of time and resources it will take you to pull together a well-thought-out response. A request with an extremely tight timeframe will mean a rushed job and a higher likelihood of a missed opportunity. You’ll also need to determine if you have the right resources available as well as access to your Subject Matter Experts (SMEs) within that time frame.

Questions to ask yourself:

• What is the cost of pursuing this opportunity?
• How many people will need to be involved?
• Do I have access and buy-in from the right internal stakeholders to meet this deadline?