LEVELING THE

PLAYING FIELD:

How Small Companies

Can Compete with the

Big Guys By Brenda Crist, Lohfeld Consulting Group

Large and Small Company Strengths

Large Companies

1. Established Client

Relationships

2. Solution Development

Expertise and Resources

3. Bid and Proposal Expertise

4. Past Performance

References

5. Certifications and Proven

Processes

6. Significant Lines of Credit to

Finance Bids

Small Companies

1. Specialized or Niche Focus

2. Speed to Respond

3. Can Do Attitude/Company

Culture/Creativity

4. Personalized Customer Service

5. Ability to Attract Long-Term

Partners

6. Lower Overhead /Competitive

Pricing

Large and Small Company Weaknesses

Large Companies 1. Use of In-House Organizations

with Competing Demands

2. Stovepiped Information; Not Readily Accessible

3. Expensive Overhead Rates and High Profitability Goals

4. Inflexible Bid Processes and Numerous Gate Reviews

5. Risk Aversion

6. Resources Issues; Leaving Smaller Jobs on the Table

Small Companies

1. Lack of Client Access

2. Lack of Financial Resources to Support a Large Bid

3. Limited Solution Development Expertise

4. Limited Past Performance References

5. Lack of Certifications, Tools, and Proven Processes

6. Harder Time Initially Attracting Partners

Level the Playing Field

1. Become a Student of Your

Client

2. Obtain the Right Resources

3. Acquire the Best Past

Performance

4. Conduct Operations

Like the Big Guys

5. Leverage Lower G&A/

Overhead Costs and

Profitability Requirements

Acquire the Past Performance

Large Companies: Have

multiple relevant past

performances they can bid

and government CPARs/

PPIPRS are updated

Level the Playing Field

1. Know which clients will provide outstanding

references and maintain their updated contact

information

2. Confirm your government client are writing

CPARs or PPIPRS and that the references are

updated and outstanding

3. For limited past performance, identify teaming

partners to fill the gaps

4. For limited past performance and bid budgets,

consider creating a partnership, joint venture,

or mentor-protégé arrangement

5. Buy a company with the relevant experience

6. Develop highly relevant and accomplishment

oriented past performance summaries

Become a Student of the Client

Large Companies: Hire Account Managers

to maintain client

relationships and

collect data vital to bids

Level the Playing Field

1. Understand the client’s requirements,

budget, hot buttons, competitors, etc.

2. Train onsite personnel to perform

account management functions to grow

business vertically

3. Hire temporary consultants to provide

insight and introductions, hire new

personnel with the needed expertise, or

buy a company with relevant contracts

4. Build client awareness using marketing

and social media campaigns and attend

professional events

Acquire the Right Resources

Large Companies: Can

call on skilled SMEs and

talented proposal staffs

to produce bids

Level the Playing Field

1. Hire consultant capture/proposals

managers to create high quality bids,

graphic artists to deliver a polished look,

and recruiters to obtain key personnel

2. Manage your knowledge; train internal

staff how to produce/maintain bid copy

such as past performance summaries

and resumes

3. Invest in technology for supporting the

bid such as a collaboration software,

and scheduling tools

4. Long-term build a high professionals

bid/proposal team, tools and

processes

Acquire the Past Performance

Large Companies:

Have multiple relevant

past performances

they can bid

Level the Playing Field

1. Know which clients will provide

outstanding references and maintain their

updated contact information

2. Confirm your government client are writing

CPARs or PPIPRS and that the references

are updated and outstanding

3. For limited past performance, identify

teaming partners to fill the gaps

4. For limited past performance histories

consider creating a partnership, joint

venture, or mentor-protégé arrangement

5. Buy a company with relevant experience

6. Develop highly relevant and

accomplishment oriented past

performance summaries

Conduct Operations Like the Big Guys

Large Companies: Use proven frameworks and

processes for conducting

operations; have technology

labs, and relevant

certifications

Level the Playing Field

1. Implement standard frameworks and practices for conducting operations in your industry and brand them within your company

2. Maintain metrics on their effectiveness

3. Hire managers with pertinent certifications

4. Obtain certifications at the company/individual levels

5. Participant in relevant professional organizations

6. Invest in technology as funds become available

Leverage Lower G&A/Overhead Costs

Large Companies:

Maintain extensive

competitive pricing

intelligence and adjust

their rates accordingly

Level the Playing Field

1. Maintain competitive G&A and

overhead rates; maintain

realistic profitability goals

2. Hire expert price/cost strategists

to assist with competitive

intelligence and pricing

3. Start a library of pricing history

information

4. Maintain a low debt-ratio to

acquire larger lines of credit

Quick Case Study

A Medium Sized Company Won a $35M contract competing against large companies by:

1. Identifying an opportunity with a current customer

2. Leveraging contracts within the agency to build relationship with new customers at the same agency

3. Building customer intimacy and stakeholder Intimacy using staff members on the ground

4. Identifying customer budget and forecast

5. Analyzing the competitor’s strengths, weaknesses, and PTW

6. Developing a technical solution based on customer hot

buttons, contingencies, and strategic goals

7. Teaming to fill solution gaps

Contact Information Brenda Crist 12309 Pretoria Drive Silver Spring, MD 20904 Office & Cell: 301-466-9566 Bcrist@LohfeldConsulting.com

Linkedin: http://www.LinkedIn.com/in/BrendaCrist Twitter: @mdproposals

Lohfeld Consulting Group, Inc. For questions for GovWin: events@govwin.com or help@govwin.com