We squeaked by with sales in April and May. We need to be confidently bringing in business. Which leads do I prioritize and what needs to be done to close?
It”™s frustrating to be working so hard, only to see inconsistent results. This certainly isn”™t the go-go economy of pre-2008. And that means business owners are going to have to be on top of their game, better than ever at forecasting, closing more than their fair share and making sure they”™re closing the right kind of business.
It”™s not easy, but it is do-able.
Start by doing a reality check on what you”™ve set as goals. Are you clear about what has to happen each and every month? Is there a written game plan that you and everyone else in the organization can follow?
Decide how many sales have to happen each month. Check on loss ratios on existing business and be sure to add in enough new sales to close the gap on losses in addition to getting growth. A good average growth rate, net of losses, is in the range of 10 percent to 15 percent, which should put you on track to grow faster than inflation.
Set your goals 15 percent to 25 percent higher than necessary. This may seem really high, if you”™re not already closing enough business. However under-planning is likely to keep you in a cycle of shortfalls.
Make a list of questions to ask every prospect. Start with the first encounter. Questions can be woven into a script and asked on every sales call. Keep notes on how prospects answer and compare results down the road when you know who closed and who didn”™t.
What questions would help your sales and service people know if someone is a legitimate prospect? Make a list of your best customers. Figure out what attributes they have in common. Create a list of questions that would lead to finding out if other prospects have those same attributes.
It may take time to come up with a list of questions. However, think about the amount of time that”™s been wasted chasing prospects that didn”™t pan out or that turned into lousy customers.
Take a look at your closing ratios historically. How may prospects do you have to be talking to at one time in order to get a sale? How long does it take to close, from the time you first discuss an opportunity until you get a contract signed and check in hand?
You may find there”™s some pipeline building to do. Often a company isn”™t closing enough business because they”™re not talking to enough of the right prospects. That makes it a pipeline-filling problem, rather than a closing problem.
Look at the resources you have available to commit to accomplishing sales goals. Do you have enough prospecting activity? Are there enough leads in the pipeline? Who else in the company can work on adding leads? Is it time to hire someone to help move sales forward?
Often business owners hesitate to commit additional resources to sales and marketing. However, if sales are slow, waiting to expand the team and increase results tends to keep the company in a shortfall situation.
Looking for a good book? Try “Selling in a Recession: 21 Tips and Strategies for Finding New Business in a Tough Economy, or Sales Prospecting Secrets, Sales Motivation, Negotiating Tips, and More to Increase Sales,” by Matthew Aaron.
Andi Gray is president of Strategy Leaders Inc., www.StrategyLeaders.com, a business consulting firm that specializes in helping entrepreneurial firms grow. Questions may be e-mailed to her at AskAndi@StrategyLeaders.com or mailed to Andi Gray, Strategy Leaders Inc., 5 Crossways, Chappaqua, NY 10514. Phone: 877-238-3535. Visit www.AskAndi.com for archived articles.
