How to Manage Client Proposals

You need to screen clients, set the right budget expectations, and only take the projects that are right for you. Negotiating with potential clients eats into your billable time - but saying yes to the wrong client will cost you a lot more.

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Transcript

1. How to Manage Client Proposals
2. What to do when a client asks you how much a project will cost?
3. • It doesn't have to be exact or detailed. Just say it looks like a $15k project, but you need more info to give a precise estimate. The point is to get the potential client over sticker shock. Give them a ballpark figure.
4. Then, send them a screener to quickly assess if you’re right for each other • what the budget is and whether it’s approved, • the timeline and the goals of the project, • and the requirements.
5. • It's perfectly reasonable to want to know the client’s budget, not because you want to charge them that same amount, but to tell them what they can get for that money and guide them to an acceptable solution.
6. • Give a client a general, item-by-item estimate and explain the reasons behind each item. An itemized quote tells the client you're a pro and didn't just pull a number out of thin air.
8. • The estimate will help a client come to terms with the price. • It’s like when your mechanic gives you an unattractive price, but once they break down the cost (new parts vs. their hourly rate), it makes sense.
9. • Once you win the project, have a kickoff meeting to get a clearer idea of the scope of work, and create a detailed estimate that they'll sign off on.
10. Tips & Tricks
11. • Beware of small jobs. Small jobs have the same overhead costs as big jobs but come with a smaller budget and tighter deadlines. • Prepare a 14-page document which outlines everything you do, plus give examples or links to sample work.
12. • Don't accept spec work before being properly commissioned and have a contract. • Call yourself a consultant and not a freelancer. When people hear "freelancer", they perceive your work and time as less valuable.
13. • Appear bigger than you really are. This way, a client doesn't hire you, the person, but another business. • Trust your instinct. If your gut tells you a client is more trouble than it’s worth, you're free to turn down the proposal.
14. Get the complete guide The guide covers everything you need to know about client proposals, project kickoff, legal and finance, and client collaboration. …want to know more? Download for free