The Importance of Managing All Those Proposals When You’re Starting Out
As a startup, one of the best ways to get your business off to a great start is to meet with investors and show them your business proposal.
However, simply sending them won’t guarantee favorable results. Sooner or later you will have to follow up with a potential client on what they think about the proposal and if it’ll proceed to an agreement or a contract.
Here are valid reasons on why you should always follow up and manage your proposals.
- Show Your Assertive Side
You can’t always expect potential backers, partners and businesses to provide feedback or a timely response. They could be busy and your proposal could be buried under a mountain of work or they may have simply forgotten to get back to you.
It’s not always a lost case when you don’t hear from them after you’ve sent the proposal. Not getting calls, messages or affirmations that yes, they love the idea and are willing to work with you and back your product or idea doesn’t necessarily equate to lost potential.
One way to get an answer is to get it straight from the source. Thanks to technology, you can now call, do a video conference or send an email and contact them yourself. Don’t think that you’ll appear desperate and spammy, because a lot of other businesses do it as well.
Managing by following up is important as you’ll be getting a direct response to your business proposal. If they say yes, then great, but if not, at least you’ll know the reason why and not lose sleep over it.
- Technology Has Made It Easy
With the proliferation of apps, tools and platforms that speed up the process, it’s now possible to send a dozen or so proposals and manage them under one intuitive interface.
Business templates can serve as your guide to creating complete, well-written proposals. Project management tools and CRM allow you to stay on top of things, including being able to add client details and see your status any time.
You can even integrate tracking features on every business proposal you send, such as when they received it, opened it and printed them on paper, or the pages where they spent more time.
These details can be useful and make follow-ups seem less random as you will have an idea on points of emphasis, e.g., what part they’re most interested in and if they even looked at the proposal at all. It can lead to a push that may convince your investor to sign up.
- You Have Competitors Doing The Same Thing
In the business industry, getting to first place can mean the difference between huge profits and losing money. The concept is the same as with sending a proposal- you have many others who are trying to do the same thing. In the race to get the funding, you will need to be persistent and follow-up when necessary.
It’s not unusual that the first company to respond and follow-up is more likely to become the partner in the end. About 35 to 50 percent of a business’ total sales go to the vendor who shows up first. If you’re thinking that the best business proposal is the one that gets the backer’s money, you’re wrong. Those who follow up shortly after a proposal has a higher chance of landing the deal compared to those who don’t.
- The ‘Seven Rule’
Following up is scientifically proven to increase your chances of getting a business proposal accepted. It’s been said that the average consumer needs to be ‘exposed’ to a product or brand at least 7 times before they make a buying decision.
The 7 rules do make sense, as people are averse to buying or investing in a brand or company they don’t know. Trust is a commodity that needs to be earned, and for this reason advertisements and marketing campaigns are essential for success.
Going back, one way that your investors can hear about you is by doing a timely follow-up. Startups are relatively unknown, and they build up reputation with financial backing, SEO and other marketing means.
Remember, pushing a few times is acceptable, as your investor will have next to no data about your company and what it does. Schedule a call, respond and pretty soon, your client will want to know more.
- You’re Losing Financial Opportunities
Every day that you’re not doing follow-ups, you run the risk of lost investment opportunities. That follow-up can mean $20,000 in your bank account instead of none at all. Plus, it only takes a few minutes and won’t take too much resources.
All entrepreneurs and startups should never pass up an opportunity to get funding and investments for their product or idea. A well-written business proposal and a timely follow-up can be all it takes to land a lucrative deal.