Should Small Businesses Answer RFPs or Not? That’s the question — Part 3

Here’s some tips to keep in mind about RFPs:

  • Don’t sign up for a service that sends you RFPs.  They are expensive and you can easily find them on your own.
  • If you’re a tiny company, you’re probably better off getting on a list where bids are put out for small jobs (usually under $100,000, sometimes lower).
  • Get to know people (business is all about relationships) in the issuing agency or company who can give you guidance on the RFP. Once you have established a relationship, they remember you and keep you in mind for “things” and you can always pick up the phone and find out what’s going on. But do not expect them to reveal confidential information that will give you an unfair edge.
  • Read the fine print, not just the actual project requirements. There’s often legal and regulatory requirements that you have to spend money on before you bid.  For instance, do you have $1 million in insurance? Are you signed up for workman’s comp?  What? No workers? Doesn’t matter, many agencies insist on this.  The list goes on but you get the idea.
  • Read the contract carefully.  Often it tells you that the agreed upon fee is not open to renegotiation even if the project undergoes “scope creep”.  I’ve spoken to vendors who wound up making $5 an hour after they calculated their final costs because of this.  Me, I’d rather flip burgers at McDonald’s.
  • If you hear anyone telling you it’s easy to get on the Federal Government  GSA schedule, run for the nearest exit.  Unless you have a full time person who does nothing else but manage this, you are wasting your time. This was told to me by the agency directly.

Check out the government RFP situation and see if it’s right for you.

Sandra Holtzman teaches CEO 035: Licensing.

One thought on “Should Small Businesses Answer RFPs or Not? That’s the question — Part 3”

  1. Hi Sandra,

    Just a clarification, and a biased one as I own the RFP Database at http://www.rfpdb.com

    “Don’t sign up for a service that sends you RFPs. They are expensive and you can easily find them on your own.”

    I’d instead say “don’t sign up for a costly service that sends you RFPs”! We created the RFP Database as a way for you to capitalize on your time spend looking for RFPs. If you come across a RFP that isn’t a good fit for you, upload it to the RFPdb and your next 5 project leads are free. And if you have more money then time, a project lead only costs you $2 (less than a small Starbucks late). The reason we went this way is that we too were sick and tired of wasting money on expensive subscription services.

    Best,

    -David

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