Understanding the three basic types of business proposals will help you develop better, faster and cheaper business proposals.

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The World of Business Proposals

Understanding and working with the three types of business proposals is crucial to helping us develop better proposals, use our time and resources more efficiently, and win more business. Once you are clear on what type of proposal you are doing, see my separate blog on Tech Tips for Developing Better Proposals.

There are three types of business proposals and buying situations:

1. Formally solicited. The buyer issues particular requirements about the products or services they want, and you, the supplier, respond very specifically to them.
2. Informally solicited. The buyer asks you, the supplier, for a proposal but hasn’t provided specifications or criteria for what they’re looking for.
3. Unsolicited. The buyer has not requested a proposal, and you, the supplier, have decided to send the buyer a proposal.

Over the years, I have seen many small businesses and suppliers submit the wrong type of proposal for the buying situation which takes up much of their time and doesn’t win them business.

I often see suppliers use a relatively generic “About Us” proposal in all three buying situations.

Usually, this means the supplier doesn’t win the formally solicited contract opportunity because they haven’t provided the right information in the right way, in enough detail or with enough validation. The generic proposal doesn’t often work with the informally solicited opportunity either because the supplier hasn’t demonstrated they deeply understand the buyer’s requirements. In the unsolicited proposal type, the generic “About Us” type proposal still doesn’t work because, typically, it is too long and has too much information for the buyer’s level of interest.

I strongly suggest that you move away from a generic proposal that you edit for different proposal-type opportunities and instead move to a content library where you can cut and paste different types of content to suit different situations.

Formally Solicited Proposals

Formally solicited proposals are written in response to a buyer releasing a formal request. The catch-all term for these formal requests is an Rfx (meaning Request for xxx). Rfx’s include Request for Proposal (RFP), Request for Quotation (RFQ) and Request for Information (RFI).

Government, publicly funded organisations and large commercial organisations are often required to use Formally Solicited Proposals (FSPs) for purchases over a certain amount.

Typically, as part of the Rfx, the buyer provides precise guidelines or requirements about the products or services they wish to buy and or outcomes they want to achieve, the type of company or companies they wish to buy from, and how they will evaluate the proposals.

Based on my experience and feedback from buyers and businesses, here is some helpful information for small businesses working with buyers using a Formally Submitted Proposal (FSP) system.

Here are 12 common bidding mistakes and how to avoid them. Avoiding these mistakes will save you both time and money.

We are here to help if you are short on time.

Welcome to DynamicProposalsNZ’s free bid-winning resources. We are here to help you – businesses with great products or services who aren’t getting the success you deserve from submitting formal business proposals (responding to RFPs).

DynamicProposalsNZ has developed an easy step-by-step process and bucketloads of tips to help you. We introduce you to the latest support technology, including AI writing assistance and proposal management software, so that you can create great business proposals yourself for a fraction of the traditional time and cost.

Self-navigate through our free online resources or better still check out our online products or contact me directly for help.

Mary-Anne Webber, Founder DynamicProposalsNZ

12 Common Bidding Mistakes and How to Avoid Them

Thank You

Thanks for taking the time to read this free DynamicProposalsNZ article – 12 common bidding mistakes and how to avoid them. I hope it was helpful. I have written and evaluated 1,000+ business documents and hundreds of business proposals and tender responses.  Let me put that experience and success to work for you. I love helping businesses put their best selves forward in bids, tenders and RFP responses. Self-navigate through my free online resources or better still check out my online products or contact us directly for help.

Mary-Anne Webber, Founder DynamicProposalsNZ

Knowing what to include in the Executive Summary of your RFP or Tender Response is one of the most essential parts of developing great business proposals. It may be the only part of your response that senior members of the organisation outside of the direct evaluation group read.

We are here to help if you are short on time.

Welcome to DynamicProposalsNZ’s free bid-winning resources. We are here to help you – businesses with great products or services who aren’t getting the success you deserve from submitting formal business proposals (responding to RFPs).

DynamicProposalsNZ has developed an easy step-by-step process and bucketloads of tips to help you. We introduce you to the latest support technology, including AI writing assistance and proposal management software, so that you can create great business proposals yourself for a fraction of the traditional time and cost.

Self-navigate through our free online resources or better still check out our online products or contact me directly for help.

Mary-Anne Webber, Founder DynamicProposalsNZ

DynamicProposalsNZ Pro Tip: don’t mistake the executive summary for an introduction to you and your business.

Here are 12 tips on what to include in the Executive Summary of your RPP or Tender response. Don’t feel you have to follow this order. It’s more important that the Executive Summary flows well into your overall RFP or tender response.

Thanks for taking the time to read this free DynamicProposalsNZ article. I hope it was helpful. I have written and evaluated 1,000+ business documents and hundreds of business proposals and tender responses.  Let me put that experience and success to work for you. I love helping businesses put their best selves forward in bids, tenders and RFP responses. Self-navigate through my free online resources or better still check out my online products or contact us directly for help.

Mary-Anne Webber, Founder DynamicProposalsNZ

When responding to a Request for Proposal (RFP) or Tender, it’s important to ensure your writing is straightforward and easy for the buyer to understand. Don’t be that company that loses the tender because the buyer couldn’t understand your offer. Instead, use these easy writing and grammar tips for business proposals.

We are here to help if you are short on time.

Welcome to DynamicProposalsNZ’s free bid-winning resources. We are here to help you – businesses with great products or services who aren’t getting the success you deserve from submitting formal business proposals (responding to RFPs).

DynamicProposalsNZ has developed an easy step-by-step process and bucketloads of tips to help you. We introduce you to the latest support technology, including AI writing assistance and proposal management software, so that you can create great business proposals yourself for a fraction of the traditional time and cost.

You can self-navigate through our free online resources or better yet, check out our online products or contact us directly for help.

Mary-Anne Webber, Founder DynamicProposalsNZ

Writing and grammar are big topics, so we have picked 12 of the most straightforward tips in this article that can make a big difference in your proposal or bid writing.

Writing and Grammar for Responding to RFPs and Tenders Tip #1 – Explain your Abbreviations

Don’t make the fatal mistake of assuming the buyer will understand your abbreviations. Write the word out in full, at least for the first time, with the abbreviation in brackets. For example, at the top of this article, I have written Request for Proposal in full and then put (RFP) in brackets. Now that I have explained what RFP means, I can use it by itself. Here are a couple of DynamicProposalsNZ Pro Mini Tips:

• If you are writing a long document, don’t be afraid to write the word out in full with its abbreviation in brackets at key points through the document
• If you will be using many abbreviations, create an appendix that lists them so the buyers have a quick reference guide.

Writing and Grammar for Responding to RFPs and Tenders Tip #2 – Avoid Clichés

A cliché is a phrase that has been overused and worn out. Using them will make you look dull and unoriginal. Here are a few clichés I see in RFP and Tender responses. I groan every time.

• Paradigm shift

• Outside the box

• Win-win

• Next level

• Let’s “touch base”.

Writing and Grammar for Responding to RFPs and Tenders Tip #3 – Avoid Convoluted Sentences

Convoluted sentences are long, complicated and difficult to understand. Often it’s because we are trying to be too inclusive in our sentence. A sign you might have a convoluted sentence is its length. If your sentence is over 50 words long, see if you can shorten or split it.

Here is an example:

Convoluted: As we enter the Post-Covid era, the demographics of university students, the attitudes of legislators at all levels of government and parents towards the accountability of universities that their children attend, the increasing demands on academics and university administrators to improve their performance year on year, the discussions over sources of funding, and concerns about the potential for the spread of infectious diseases and other unhealthy conditions make this the right time to examine a new cohort of university students in the method of the University of Otago’s longitudinal data-collection studies, which were first started with the National University Study of 1969.

Straight Forward: As we enter the Post-Covid era, it makes sense to add another cohort of students to the University of Otago’s longitudinal student study. Student demographics, policymaker and parental attitudes, increased expectations of staff and concerns about the spread of infectious diseases have changed the university landscape.

Writing and Grammar for Responding to RFPs and Tenders Tip #4 – Shorten Words

Try to have a balance of short and long words. Too many short words can make you look very blunt. Too many long words can you look like you are grandiose or hiding something behind the words. Here are some quick word-change options:

Writing and Grammar for Responding to RFPs and Tenders Tip #5 – Reduce Redundant Words

When two words have the same meaning, one of them is redundant. Redundant words are great when you want to emphasize a point but use them sparingly.

Writing and Grammar for Responding to RFPs and Tenders Tip #6 – Simplify Language

Use longer descriptions with care. They often don’t add any value and can make your proposal unnecessarily wordy and tiring to read.

Writing and Grammar for Responding to RFPs and Tenders Tip #7 – Proofread

Make sure you proofread your proposal, or better yet, have someone else proofread it before you submit it. Spelling mistakes can easily creep in when you are working on long documents. Automatic spell checkers can sometimes “correct” your word to a different word completely.

Writing and Grammar for Responding to RFPs and Tenders Tip #8 – Get to the Point

Bryan Garner, author of the Harvard Business Review Guide to Better Business Writing, says “One of the great diseases of business writing is postponing the message to the middle part of the writing”. Enough said.

Writing and Grammar for Responding to RFPs and Tenders Tip #9 – Use the Active Voice where appropriate.

In English writing, there are two main voices – active and passive. Put simply, active is when the Subject does the Object, and passive is when the Object is done by the Subject. Both are grammatically correct. Choose the voice that puts the emphasis on your key sentence topic.

For example:

If a sentence isn’t working, change its voice and see if it flows better.

Writing and Grammar for Responding to RFPs and Tenders Tip #10 Beware the False Subject

Example: “There is reason to believe that the company will not meet its projected earnings for the quarter.”

False subjects usually appear at the beginning of the sentence. This means the real subject, in this example the company, gets pushed down the sentence. Perhaps appropriate if you are padding out a message to ease its delivery. Not so good if you are putting a false subject in front of one of your key competitive advantages.

Writing and Grammar for Responding to RFPs and Tenders Tip #11 Don’t Sweat the Small Stuff

Unless you are writing a proposal to be an editor or writer, your buyer isn’t likely to be marking you down for grammar mistakes. Your objective is to be clear and concise and put your best self forward.

Writing and Grammar for Responding to RFPs and Tenders Tip #12 Be Yourself

No matter what you write and how you write it, make sure the proposal sounds like you!

Thanks for taking the time to read this free DynamicProposalsNZ article. I hope it was helpful. I have written and evaluated 1,000+ business documents and hundreds of business proposals and tender responses.  Let me put that experience and success to work for you. I love helping businesses put their best selves forward in bids, tenders and RFP responses. Self-navigate through my free online resources or better still check out my online products or contact us directly for help.

Mary-Anne Webber, Founder DynamicProposalsNZ

Here are 12 key Twelve Tendering and RFP Tips that will help any company develop better formal business proposals (RFP responses).

We are here to help if you are short on time.

Welcome to DynamicProposalsNZ’s free bid-winning resources. We are here to help you – businesses with great products or services who aren’t getting the success you deserve from submitting formal business proposals (responding to RFPs).

We have developed an easy step-by-step process and bucketloads of tips to help you. We introduce you to the latest support technology, including AI writing assistance and proposal management software, so that you can create great business proposals yourself for a fraction of the traditional time and cost.

Self navigate through our free online resources or better still check out our online products or contact me directly for help.

Mary-Anne Webber, Founder DynamicProposalsNZ

Tendering and RFP Response Tip #1 Avoid Standard Responses

Responding to RFPs and tenders is not about sending in a standard “About Us” type presentation with some pricing attached. It’s really important to read the RFP/tender to understand what the buyer wants and reflect this back to them in your response.  Read over some past responses you have done. How much of the first five pages of the document have you talked about you and not shown that you understand the buyer and what they have asked for? Try not to use standard stock images unless you really have to. I reviewed two documents from two different suppliers recently and they had both used the same stock image. How would that make a buyer feel?

Tendering and RFP Response Tip #2 Know Your Buyer

Try to get to know your buyer as well as you can before the RFP or tender is due. Don’t make assumptions about what is important to them. Read the RFP or tender documentation carefully. Go and see them to talk it through. Don’t make assumptions about what they think about you, good or bad. Make sure you are really clear on who is doing the evaluation of your tender.

Tendering and RFP Response Tip #3 Organise to Win

Depending on the complexity of the RFP or tender, you may have between 3 weeks and six months to respond. The time allowed for a response is set by the buyer based on how much time they think it will take you to respond. Proactive companies start work on the first day an RFP or tender comes out or even before and develop a work plan for how they will put their best foot forward. Standard companies leave it to the last week, even the last couple of days. This forces them into generic response mode. Use your time leading up to the deadline well.

Tendering and RFP Response Tip #4 Put your Best Self Forward

I know so many great companies that make themselves look so average when it comes to responding to RFPs and tenders. Very often companies will generically sell the sector or the category, not themselves. For example, they will talk about the benefits of outsourcing, rather than the specific benefits of outsourcing with them. Use plain English so buyers can easily see how good you are. Don’t assume that everyone reading your proposal is from your industry or that they understand Kiwi English or business jargon.

Tendering and RFP Response Tip #5 Showcase Your Competitive Advantage

Don’t be afraid to highlight your competitive advantages throughout the proposal. Keep them specific to you and validate wherever possible. For example:

Our websites are easy to edit.

Vs.

Our websites are easy to edit (96% of our customers find our websites significantly or very significantly easier to edit than other websites. Source: Annual Survey).

The survey results could even become a call-out in your main response document.

Tendering and RFP Response Tip #6 Write and Present to Win

When you receive the Request for Proposal (RFP) or tender, take the time to write out the points you think are going to help you win the business and ensure they are included in the proposal. Follow the order of the RFP if one is provided. Use plain English and be consistent with the words you use. Organize your writing into clear points that are easy for buyers to follow. Look for evidence points for everything you write about yourself.

Tendering and RFP Response Tip #7 Price to Win

• Price to Win is a methodology used by large companies to help them put their best prices forward – it’s about determining the lowest possible price to win the contract while achieving a reasonable profit. It involves modelling costs and prices, competitors’ prices and the buyer’s budget. Smaller companies can follow a similar approach using a whiteboard and a team brainstorm.
• A lot of buyers don’t put a weighting on price alone. Instead, they evaluate Value for Money. Value for Money criteria is different from Price criteria in that it balances how well you have met the other RFP criteria with the price you have offered. Make sure you understand whether the criteria is Price or Value for Money.
• Be very clear on what the buyer is asking for and respond to that, and no more, in your pricing section. I have seen so many great companies lose tenders because they have made assumptions the customer wants more than they have asked for and included that in their price, pushing their price above competitors. If someone wants a Suzuki Jimny, don’t give them a price for a top-of-the-line Toyota Land Cruiser.

Tendering and RFP Response Tip #8 Showcase your Value-Adds

Sometimes a buyer sets the scope of what they want too narrowly to achieve their objective in your opinion. For example, they ask for a website, but don’t ask for functionality you know would make a big difference to them, or hosting, maintenance, security, and SEO support. Don’t take it upon yourself to increase the buyers’ scope for them in your RFP response. You risk overpricing yourself and losing the business.

Instead separate the value-adds into a new section and price them there. This will keep your price competitive while showing that you can really help them to achieve their objective.

If the buyer’s scope is not clear, it’s ok to contact them to ask them for more information.

Tendering and RFP Response Tip #9 Keep Your Win Costs Down

Think about the value of the work and the appropriate amount to spend winning it.

Tip#1 Don’t tender for work you are unlikely to win.

Tip#2 Each time you respond to a tender, keep your drafts and work. This will give you a great back catalogue for future RFPs.

Tip#3 Spend your time wisely. For example if you are not used to using Canva (great tool though it is), when you are 48 hours out from submitting a tender is not the time to start learning how to use it.

Tendering and RFP Response Tip #10 Keep Future Doors Open

If you don’t win a contract for work, don’t exit the relationship with the buyer. Instead use it as a learning experience and look for other opportunities with the buyer.

Tip#1 ask for a debrief. Ask the buyer how they came to their decision, why you were not chosen and for constructive feedback on the strengths and weaknesses of your proposal.

Tip#2 maximize the value of the debrief. Aks questions like “how did I rank with the others both on solution and price”. What did the successful tenderer have that we didn’t have?

Tip#3 ask about other opportunities. For example, you may not have won the website tender, but you could win the SEM (search engine marketing) business.

Tip#4 remember that in New Zealand, people move roles and things change. While you may not win this round, keep up positive relationships because you don’t know what might come out of it.

Tendering and RFP Response Tip #11 Deliver on Your Promises

New Zealand is small. People talk. Your greatest source of new business is a happy buyer. If you win a contract to supply a good or service, make sure you deliver what you said you would deliver, when you said you would deliver it, for the price you said you would deliver it. If you can’t deliver what you have promised, your could lose the contract or worse. Most importantly, in a small country like New Zealand, you could damage your reputation, and that could take a long time to repair.

One of the key things you can do to ensure you deliver on your promises is not to overpromise in the first place. It’s easy in a tendering situation to overpromise to get the business, thinking you will sort out the over promise when you win the business. Unless you are 100% certain you can sort the overpromise, just don’t do it.

Tendering and RFP Response Tip #12 Keep Learning and Improving

If you win a tender, or don’t win a tender, keep learning and improving for next time. Seek out buyers’ feedback, both positive and negative and use it to identify your strengths and areas for improvement. Regularly take actions to improve your products and services and let your buyers and prospective buyers know. Keep improving your tendering capability. What was a good tender ten years ago is unlikely to be a good tender today. By showing buyers and prospective buyers you are listen and respect their views, you are showing them you are committed to excellence.

Thanks for taking the time to read this free DynamicProposalsNZ article. I hope it was helpful. I have written and evaluated 1,000+ business documents and hundreds of business proposals and tender responses.  Let me put that experience and success to work for you. I love helping businesses put their best selves forward in bids, tenders and RFP responses. Self-navigate through my free online resources or better still check out my online products or contact us directly for help.

Mary-Anne Webber, Founder DynamicProposalsNZ

Welcome to DynamicProposalsNZ’s free bid-winning resources. We are here to help you – businesses with great products or services who aren’t getting the success you deserve from submitting formal business proposals (responding to RFPs).

DynamicProposalsNZ has developed an easy step-by-step process and bucketloads of tips to help you. We introduce you to the latest support technology, including AI writing assistance and proposal management software, so that you can create great business proposals yourself for a fraction of the traditional time and cost.

Self-navigate through our free online resources or better still check out our online products or contact me directly for help.

Mary-Anne Webber, Founder DynamicProposalsNZ

Here is a free standard RFP Response template that you can use.

It’s very difficult to know what the best format or structure of a RFP or Tender response should be without seeing the actual RFP or tender request. Therefore I generally don’t recommend standard responses to RFP or tender requests – they don’t stand out to the buyer and they encourage us to take short cuts with our responses. Instead I think customised responses are far more likely be successful.

DynamicProposalsNZ Pro Tip#1: Always ask the buyer if they have a preferred format.

DynamicProposalsNZ Pro Tip#2: If the buyer has specified a format for the response, make sure you follow that format.

If the buyer hasn’t provided a format, here are 12 standard sections I would expect to see in an RFP or tender response format. I hope its helpful. Check out my other resources for more support, or contact me directly if you would like more support.

DynamicProposalsNZ Pro Tip#3: Always, always, always show proof and give evidence to back up what you say.

Thanks for taking the time to read this DynamicProposalsNZ article. I hope it was helpful. I have written and evaluated 1,000+ business documents and hundreds of business proposals and tender responses.  Let me put that experience and success to work for you. I love helping businesses put their best selves forward in bids, tenders and RFP responses. 

Self navigate through my free online resources or better still check out my online products or contact me directly for help.

Mary-Anne Webber, Founder DynamicProposalsNZ