Recent data indicates that businesses are issuing more Requests for Proposals (RFPs) now than in the past. According to Loopio's 2024 Trends Report, teams responded to an average of 175 RFPs in 2023, up from 162 the previous year, with 44% of teams reporting an increase in RFP responses.
In today's competitive business environment, having a well-defined proposal writing strategy is essential for securing contracts and sustaining growth. As a matter of fact, RFPs influenced an average of 37% of company revenue last year.
A good proposal response is compliant with the RFP and is strategic, persuasive, and aligned with the client’s needs. To do this you need to spend time and effort tailoring messaging, highlighting value propositions, and differentiating your company from competitors.
Small businesses often face unique challenges when responding to RFPs, including limited resources, lack of past performance, complex compliance requirements, and an overall competitive disadvantage. Without a structured approach, businesses risk wasting valuable time and resources on ineffective proposals.
This article will guide you through developing a long-term proposal writing strategy to enhance your efficiency, ensure consistency in every submission, and best of all, improve your success rate.
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1. Define Your Proposal Goals and Success Metrics
"Setting goals is the first step in turning the invisible into the visible."
– Tony Robbins
Before diving into writing the proposal and pulling engineers, sales reps, or executives away from their core work, it's crucial to establish clear goals. What does success look like for your organization? And how are you going to measure it?
Key performance indicators (KPIs) might include:
Win rate percentage
Average response time per proposal
Revenue generated from awarded contracts
Client feedback and satisfaction
By setting measurable objectives, you can track progress and refine your proposal approach over time.
A key focus for a small or mid-sized business is aligning proposal goals with business development objectives. This means ensuring that your proposal efforts directly support your company's broader growth strategy. Instead of responding to every opportunity that arises, businesses should focus on proposals that align with their target markets, revenue goals, and long-term vision.
For example:
If your business development strategy is to expand into the healthcare sector, your proposal team should prioritize RFPs related to healthcare services rather than unrelated industries.
If your business wants to build long-term client relationships rather than one-off contracts, your proposals should emphasize ongoing support, scalability, and value-added services.
It’s especially important to set realistic goals that align with available resources and capacity. Understanding the balance between effort and return on investment can help prioritize high-impact opportunities.
2. Understand the Basics of Responding to RFPs
Responding to Requests for Proposals (RFPs) can be daunting. It’s easy to get overwhelmed when you receive a 100+ page document full of legal-ease and detailing every requirement needing to be submitted for consideration, let alone to win the business.
Businesses issue RFPs primarily as part of their procurement strategy to find the best vendors, products, or services while ensuring a competitive and transparent selection process. Businesses are not only issuing more RFPs, but are also placing greater emphasis on them as a critical component of their sales and procurement processes.
Here are a few steps to get started, so you don’t let any documents linger unread:
Read the RFP Carefully: Ensure you fully understand the requirements, deadlines, and evaluation criteria before committing resources. Highlight important sections as you read to revisit when assembling your plan.
Check Eligibility: Confirm that your business meets the necessary qualifications, such as experience, certifications, or financial stability. If not, there could still be partnership options, so don’t get discouraged.
Identify Key Requirements: Highlight essential sections like the scope of work, evaluation criteria, and required documentation to tailor your response effectively. This is where the bulk of your time will be spent responding.
Clarify Questions Early: Many RFPs allow potential bidders to submit questions before a specified deadline. Use this opportunity to seek clarification on ambiguous requirements.
Pro Tip: Start ASAP
The worst thing you can do when responding to an RFP is to wait to read the document. There are many valuable deadlines contained within these documents and strict compliance rules to be followed, so understand that the clock begins ticking as soon as an RFP is released.
3. Establish a Proposal Development Workflow
An efficient workflow ensures that every proposal is completed on time and meets quality standards. Consider implementing a structured process with clear roles and responsibilities:
Proposal Kickoff: Identify the opportunity and assign tasks to team members.
Content Development: Draft key sections using existing templates and relevant data.
Review & Editing: Conduct a thorough review to ensure compliance, accuracy, and persuasiveness.
Final Approval & Submission: Obtain sign-offs and submit the proposal before the deadline.
Using a kickoff package and checklist for each phase can help maintain consistency and quality. For small businesses where team members may wear multiple hats, defining clear roles—even if overlapping—is crucial to prevent bottlenecks and missed deadlines.
Once the proposal is submitted, it is usually reviewed and vendors are down-selected to move through subsequent stages.
Don’t forget to account for post-submission activities in your workflow:
Presentations or Q&A Sessions: Some RFPs require oral presentations.
Client Follow-Up: The sales team stays in touch with the decision-makers.
Debriefing: If the bid is unsuccessful, requesting feedback helps improve future responses.
PRO TIP: Create a Proposal Library to Increase Agility
Creating a centralized repository of proposal content can significantly streamline the writing process. Key components of a proposal library include:
Reusable templates for sections such as executive summaries, pricing, and past performance
A database of company credentials, case studies, and testimonials
Standardized formatting and branding guidelines to maintain consistency
Having ready-made content allows teams to focus on tailoring proposals to specific opportunities rather than starting from scratch each time.
4. Research and Qualify Opportunities Effectively
“You miss 100% of the shots you don't take”
- Wayne Gretzky (and Michael Scott)
A favorite quote uttered by more sales reps than I could possibly count over the past 15 years I’ve worked in proposals. But unlike shots on a goal, not all proposal opportunities are worth pursuing.
For example, in an average NHL game, teams take about 30-35 shots on goal per game, but only around 2.5 to 3.5 goals are scored per team. This means the average shooting percentage (goals per shot) is roughly 8-10%. An average proposal team responds to roughly 175 RFPs in one year and good win-rate for a proposal team is 30% - 50%
So, how do you calm the chaos of constant requests pursuit requests?
Developing a qualification framework helps prioritize high-value opportunities while avoiding resource-draining bids. Key factors to consider include:
Alignment with your company’s expertise and services
The estimated contract value and profitability
Competitive landscape and likelihood of success
If the RFP aligns with your strengths, strategy, and resources, move forward implementing your Proposal Development Workflow outlined above. If there are too many red flags, it’s better to say no and focus on stronger opportunities. By being selective, you can focus efforts on proposals with the highest potential return.
According to Loopio’s survey, enterprise companies submitted 3.7x more RFPs than small and medium-sized businesses (SMBs). What does this mean? SMBs should focus on opportunities that align with their core strengths and unique value propositions, rather than trying to compete with larger firms on every bid.
5. Strengthen Collaboration Between Teams
Often, sales reps or account managers discover RFPs through client relationships and then the proposal team or decision-makers review the RFP to determine if it’s worth pursuing.
Once a go is established, it’s all hands on deck.
Proposal writing often requires input from multiple departments, including sales, marketing, finance, and subject matter experts. According to Loopio, between 36-57% (depending on industry) of proposal owners struggle to engage with SMEs, the biggest challenge when responding to an RFP.
Building stakeholder relationships is key to a successful proposal strategy.
To ensure your process enhances collaboration:
Establish a centralized communication platform for sharing documents and feedback.
Schedule regular strategy meetings to align teams on upcoming opportunities.
Conduct post-mortem reviews to identify lessons learned and areas for improvement.
Encouraging cross-functional teamwork ensures a well-rounded and compelling proposal.
Pro Tip: Lacking Talent? Outsource.
For small to mid-sized businesses, setting up a proposal team to manage this process—whether in-house, outsourced, or a hybrid model—can be a game-changer for business growth and competitiveness. Remeber, sales owns the relationship and strategy, while the proposal team ensures a compliant, compelling, and high-quality response. When they work together seamlessly, win rates increase significantly.
6. Focus on Continuous Improvement
A successful proposal strategy is not static—it evolves based on performance insights and market trends – you can learn from every RFP. Regularly evaluate proposal effectiveness by:
Tracking win/loss ratios and analyzing reasons for outcomes
Gathering feedback from clients and proposal reviewers
Updating templates, libraries, and strategies to reflect new industry best practices
Continuous refinement helps maintain a competitive edge and improve future success rates.
Pro Tip: Leverage Technology to Streamline the Proposal Process
Investing in proposal management tools can significantly enhance efficiency. Consider using:
Proposal automation software to generate templates and streamline document creation.
Customer relationship management (CRM) tools to track client interactions and tailor messaging.
Collaboration platforms like Microsoft Teams or Google Workspace for real-time editing and approvals.
For small businesses with budget constraints, free or low-cost software solutions like Google Docs, Trello, or Asana can help manage the proposal process efficiently without significant investment. You can even benefit from setting up a simple tracking system on a spreadsheet to measure progress and refine strategies over time.
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Developing a structured, long-term proposal writing strategy is essential for business growth and success. By setting clear goals, creating reusable content, optimizing workflows, and leveraging technology, organizations can improve efficiency and increase their proposal win rates.
For small and mid-sized businesses, focusing on efficiency, strategic opportunity selection, and leveraging available resources effectively can make the difference between winning and losing contracts. A well-planned approach ensures consistency, enhances collaboration, and ultimately leads to more contract awards.
If you need expert guidance in refining your proposal writing strategy, our team is here to help. Contact us today to learn more!
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