When you discover a Request for Proposal (RFP) that seems to be in your wheelhouse, it may seem like a no-brainer to apply. Potential source of cash=great idea. I spend a lot of time helping companies win RFPs, which can come up from local city government (maybe they have funds to use up from their own grants), state entitles, or purchasing opportunities with a Made in America mandate. There are also federal research grants for small business, which I will cover in future posts. But all of these opportunities come with a price tag. It may be worth it, but let’s go ahead and build the business case to be sure.
I scribbled the map above to come up with ten factors I think you should consider before you begin investing your time and energy in an RFP. This may seem like extra work, but if you do choose to pursue the opportunity, your answers will come in handy. You may also think of additional data points you need to collect to make the decision. (For extra credit, you can assign weights to each and build a reusable spreadsheet--shout out to Tara).
But, keeping things simple, break out your notebook, have the RFP in front of you, and answer these ten questions:
- What are the costs in time, and effort to filing this RFP? Don't forget opportunity cost.
- What is the gross amount of funding you will receive if you are awarded?
- What is the net amount of funding you will realize if you are awarded? (Remember, you may have to pay partners, subcontractors, plus overhead...)
- Does the work of the RFP align with your organization’s existing strengths, even if it is a stretch?
- To the best of your knowledge, will you be able to submit a highly competitive proposal?
- From your research and some digging, is there a strong likelihood you could be awarded the RFP?
- Some grant RFPs have matching fund requirements--they want you to have skin in the game. This can be in the form of cash or ‘in-kind’ contributions. Does this RFP have a difficult match requirement for your company?
- Does the RFP’s goals fit with the strategic direction of your enterprise, or would it take you too far off course?
- Do you have the ‘right people on the bus’? Are you adequately staffed to perform the work of the RFP, or will the RFP enable you to staff up sustainably?
- Finally, should you be awarded, will you be fully prepared to execute the grant or contract with excellence? You are unlikely to get a second chance to impress the buyer or funder.
