Spot the Spender!

Wednesday 4th Mar 2009

27,000 opportunities for you to sell!

By Matt Skinner, Managing Director, IRD www.irdgroup.com.au

Yes, the economy has tightened up.  Yes, people are watching their pennies and yes, so too are companies.

What this says is that people and businesses are going to be more cautious with their spending, it doesn’t necessarily mean that they won’t spend at all. 

What does this mean for your small business?  It means your sales process will need to shift from taking orders to proactively finding the opportunities to create them!  Those companies that a) keep their pipeline full of businesses that have a need to spend and b) have strong sales skills - will be in a solid position in 2009. 

Let’s look at business to business opportunities.  Movement in Australian companies from December 2007 to December 2008 generated over 27,000 business to business sales opportunities, according to Information Resource Development’s (IRD) inaugural ‘Sales Lead Index’. 

The IRD Sales Lead Index is an overview of Australian organisations’ intention to spend borne out of reported corporate activities, initiatives or change.

This means that there were a minimum of 27,000 reasons for one business to spend money and another to make it.  1,645 companies announced the future opening of stores, interstate offices, hiring of more people.  The common thread - they need to spend on infrastructure.  More than 2,000 mergers and acquisitions were announced.  In sales prospecting terms, that’s a lead for change management consultants, IT integration and collaboration specialists, events firms, PR, marketing and more. 

The besieged finance industry, despite its struggles, reported the greatest level of activity that will require outsourced support from business partners.  Competition to win business this year will be fierce and budgets will be tight.  However there will always be sales opportunities for those savvy enough to spot the spenders and chase them. 

To help get your confidence back and sales in, here are ten top tips to keep your pipeline healthy.

1.       Don’t buy into the current market mentality.  Despite the impending recession companies are STILL spending to facilitate growth or progress - well over 27,000 of them in fact.

2.       A company expanding = A company spending.  Focus outbound sales on businesses that you know are expanding and therefore spending.  These businesses will be more receptive to a timely and well tailored sales proposal.

3.       A company in trouble needs a helping hand - and will pay for it.  If you have a service that can minimise the greater effects of redundancies.  A product or service that can ensure a company never releases misleading advertising ever again.  A commodity you can get cheaper than the others - chances are the company will want to hear what you have to say.

4.       Plan for success, don’t hope for it.  Identify target markets that you understand and can service well and focus prospecting on those areas.

5.       Understand what the prospect does - 5 minutes of research shows the prospect you are serious about their business.

6.       Ask questions - no matter how daft they may seem, don’t be afraid to say "I don’t understand" - the more you know the better you can sell.

7.       Understand the reason for a yes or no.  That way you constantly improve your pitch or offering.

8.       When asked questions - formulate your answer around your client’s exact needs - and end with ‘does that answer your question?’  Use examples, case studies or anecdotes of similar companies or companies that have been in similar situations.

9.       Personal referrals are gold.  If the opportunity presents itself, ask if they know anyone else that might be interested in your services.

10.   Work your existing client base - increase you knowledge of your business priorities and find a way you can help them achieve their goals through your products and services.