Deciding which new business opportunities to pursue is critical to competitive bidding success.

Many businesses devote a lot of effort to opportunities they have little chance of winning. They waste a great deal of time ‘having their brains picked’ and ‘making up the numbers’ for buyers who are required by ‘purchasing guidelines’ or ‘standing orders’ to invite so many suppliers to bid for contracts of a certain size or type. Whether or not they are happy with an incumbent provider they are compelled to obtain other quotes.

Sometimes low quotes are used to negotiate a price reduction from a preferred bidder. If your company faces such problems, what can and should you do to winnow out timewasters who are not seriously interested in your business becoming a supplier? How might you and your colleagues ‘qualify’ leads or evaluate enquiries in order to select those opportunities that are ‘right for you’?

For starters make sure you are talking to the right people. Is your contact the person who will actually make the purchase decision? If not, find out who the key decision maker is, who else might be an influencer, and when and where the decision is likely to be taken. For example, will it be at a particular meeting of the prospect’s board?

Try to ascertain whether the prospect has clear requirements, if funding for the proposed work exists, and when it needs to be done. How much has been allocated to the relevant budget? Will you and your colleagues be able to do what is needed within the available timescale and budget?

How important is the project for the prospect? A purchase of marginal interest might be slowed, put on a back burner or cancelled if budgets are reduced. If you seek closer relationships, focus on projects of strategic significance to the organizations you are targeting.

Consider the possible consequences of the order for your organization. Would it help you to achieve longer-term objectives? Is the prospect financially sound, ‘going places’ and a person or organization you would like to have a business relationship with?

Other things being equal, you should select opportunities that offer the prospect of a broader and continuing relationship. Much may also depend upon the number and quality of competitors who have also been invited to bid. Assess too the major areas of commercial and technical risk, and how these might be handled. The higher the risk the greater the financial return you should seek.

Keep a sense of perspective. There may be potential benefits beyond immediate financial gain to consider. For example, what might you learn? Would the new client represent a useful reference site or boost your reputation?

The acid test you should encourage your employees to apply is whether or not they would pursue the opportunities in question if they owned the business. Ask them also if they would be willing to take personal responsibility for delivery.

Finally, find out how approval of the purchase and a binding commitment are to be evidenced. Nothing is more frustrating than to find after an order has been cancelled that a finance department refuses to pay for work done on the grounds that a valid purchase order has not been issued.


© Colin Coulson-Thomas, 2006


Colin Coulson-Thomas, leader of the winning business research and best practice programme is co-author of the ‘Winning New Business, the critical success factors’ resource pack which is available from https://www.policypublications.co.uk/WNB_best_practice_resource_pack.php. Colin has reviewed the processes and practices for winning business of over 100 companies and can be contacted via colinct@tiscali.co.uk or www.coulson-thomas.com