Requests for proposals are one of the biggest areas of bloat and waste in business, yet some 95% of businesses still use them. After you have done something one way your entire career, change can be quite scary. But there is a better way to start your next project than with an RFP.

RFPs discourage innovation by only allowing you to work with existing companies that are also likely stuck in the rut of doing things the way they have always been done. It automatically cuts out startups and small businesses because of the shear expense of putting one together. RFPs are supposed to ensure you get the best quality product for your business, but they often end up having the opposite effect.

The average RFP costs companies 4800 hours from 2-3 employees, which can mean a cost of more than $300k a year just to compete for work. 17% of firms say they respond to 10-21 RFPs per month, which adds up to a minimum of 120 RFPs per year. That’s a lot of work for no guaranteed business.

Fortunately, a much more common sense and scaled down proposal can be just as effective. Proof of Value shows potential customers the projected bottom line benefits of the project rather than outlining the whole thing from start to finish.

Using a new way of finding vendors opens up your business to new kinds of innovation from companies that previous just could not afford to compete. It cuts down on the excess that comes from old, familiar ways of doing things. It allows for new ideas to be brought to the forefront.

The vast majority of RFPs turn into wasted time and money or projects that are failures. Learn more about POV and why the RFP should be on the way out from this infographic.

Infographic source: Semarchy