Why do RFPs Matter in Business?

If you’re any kind of business, you may not be aware of the term RFP. Or, on the other hand, you are very familiar with RFPs as a source of revenue and growth for your organization.

A request for proposal (RFP) means that an entity such as a government, business or organization is inviting suppliers to submit a proposal for a project. The project could be new or existing, could require subcontractors, could be simple or complex.

Why RFPs Matter for Business

For your business, it means an opportunity for growth, an opportunity to expand your client base, an opportunity to explain and advertise your business to new markets.

RFPs can be announced through open competition, as many government agencies do, or by invitation only, which is more common in the private space. Its main objective is to encourage a variety of proposals that can be considered by the project’s organizers.

Why you should respond to an RFP

Responding to an RFP gives your business a chance to gain a new client or for extending contracts for existing goods or services to a current client. If your business receives an invitation to respond to an RFP, it means that your services are regarded as viable for consideration; and responding should be taken seriously.

Be prepared to respond to all of the questions in a clear, concise and compelling manner, and make sure you have a strategy in place – including key win themes, a solid value proposition that is unique to your organization only and competitive pricing.

What an RFP entails

The RFP will define the client’s project, its goals and the organization that is procuring it. It will detail the project scope of work and its requirements, how to structure the proposal, the contract terms and the bidding process.

In short, an RFP allows the organization to determine the best supplier for their project. With specific guidelines for formatting and presentation, the RFP provides its evaluators with proposals in identical formats, responding to identical questions.

The RFP will often include an evaluation criterion and scoring for different areas of the proposal. For example, price could have a weight of 30%, scope of work 30%, past performance 20%, personnel experience 20%.

If you’re new to the RFP world, The RFP House can help your business through the process and gain new business. Give us a call today and see how we can help.