In business it is important to sustain a healthy bottom line. Increasing sales with contracts is one option that business owners seek when planning to increase profits. The question, however, is does this solution really drive better profit performance? Or are contracts overrated? Here are 5 factors to consider before you agree to sign on the dotted line.
#1: What are the opportunities?
When deciding what new opportunities to pursue always consider your current capacity. Bear in mind the amount of time available to service existing clients and manage tasks. Factor in time for training, marketing, research, and proposal writing.
#2: Who else is competing?
Follow the trends in your industry to streamline the procurement process. What are others currently doing to obtain new contracts? Find out who the top players are and study their practices. When it comes to securing bids there’s no need to reinvent the wheel just figure out how you can create a proposal that stands out from the crowd.
#3: How does this impact your bottom line?
There is a wealth of information on business success but what are you doing to get results? If you want to get new contracts, consider why your product or service will appeal to the prospect. Does your offering provide a unique solution for them? Is it timely and relevant to their mission? Will it help them achieve their current objectives? If not, then you may need to go back to reconsider your approach.
#4: What is the best strategy?
Work backwards by first stating your goal and then filling in the gaps. Think in terms of what types of contracts you need to get and the most effective ways to reach the key players. Strategy is a vital part of the timeline. Have you created a marketing plan? Once you figure out the “who”, then moving on to the “what” is as simple as fitting the right solutions together.
#5: How will you meet demand?
After you know who you want to reach and what solution you can provide, get set up to move from prospect to close. Getting new contracts is a process and you need to understand each step. When you don’t break out the elements then you run the risk of accepting projects that do not meet sales and profit expectations.