Closing business in challenging times

Over the course of the past few months, we have been asked by many of our customers how to drive more business in a down economy. Although there is no silver bullet, there is a common theme in that companies that are going to be successful in this down cycle are going to be the companies with the right people on their team doing the right things.

What does the “the right people” and “doing the right things” really mean? We will share what we think it to be in the coming weeks starting today with a commentary on sales people “doing the right things”.

I have asked John Edwards a principal in Silver Creek Partners to bring us back to sales 101. John is a 30yr veteran of enterprise software sales success as both a direct contributor and Global VP Sales. Not only has John weathered these down cycles but has over performed and exceeded quotas during previous tough economic down cycles.


CLOSING NEW BUSINESS IN CHALLENGING TIMES

I often hear my customers say they are having trouble closing new business because their customers are reluctant to commit the funds to buy the proposed solutions. The prospects understand the value of the solution proposed and they are convinced that they can obtain that value but, they are reluctant to commit funds in these uncertain times. How can you overcome that objection and move your proposal to closure?

The answer is often overlooked because you have broken the sales process. What do I mean? Very simply, sales is a science not an art. There are logical steps that must be taken in any sale. If those steps are skipped, the sale will probably not close.

Everyone knows that you must first qualify a prospect.

Qualification is defining the prospect’s needs and determining if you can fill those needs.
Next, do they have a budget? If not, can they secure the funds?
Do they have a plan in place on how they will determine which solution best fits their needs and which vendor can successfully implement the solution?
Finally, do you have access to the final decision maker?

If the answers to any of these questions is “no”, you do not have a qualified prospect. If the answers are “yes”, then you are ready for the next step.

Your next step is to lay out a plan with the prospect on how you will jointly proceed through the sales process. This is probably the most important aspect of eventually closing the sale. It creates a partnership between you and your prospect. You are laying the foundation for a “win/win” relationship.

The plan should be straightforward.
Define each step in the evaluation,
Determine who is responsible for the completion of each step and set a time line for each step.
Finally, print this plan as a document and both you and the prospect should sign it. This makes a mutual contract between you and the prospect. You each agree that you will do each step, have the resources available for the completion of each step, the timing of the completion of each step in the process and what step follows each completed step.

Now, you have a plan. But, wait! Let’s assume you have completed each step and now it is time to close. The prospect is reluctant to close because they are uncertain of how this current economy is going to affect their business and revenue. What do you do now?

Take time to understand the prospects’ concerns. Are they real or not? It doesn’t matter. In your prospects eyes they are very real. Overcome these concerns with facts. When will the prospect begin to see a return on their investment?

What is the potential reward for implementing your solution now rather than waiting until the storm passes?
What is the cost of delay?
How can you structure your contract to meet the prospects needs and still give you a reasonable return?
Do you need to set up a delayed payment plan or, does it make more sense to allocate additional resources to implement more rapidly thereby, reducing the time it takes for your prospect to recover their investment?
Can you implement the part of the solution that provides the highest and/or most certain return on investment now, at a lower cost, and implement the rest when business conditions improve?

These are only a few of the ideas you would present to your prospect. There are most certainly others that are specific to your prospects needs. If you have truly partnered with your prospect through the sales process, you will know what best serves your prospect.

In summary, it all comes back to the beginning. If you truly qualified your prospect and if your prospect agreed to the written sales process, you should have a solid understanding of your prospect’s business. By following that process, you and your prospect have entered into a partnership. When your prospect pushes back, go back to the process you jointly created. Understand the value you have offered. Restate that value and, most importantly, propose the solution that best addresses your prospects current needs. Create a solution which solves your prospect’s needs. Remember, he who serves best gains the most.

About Silver Creek Partners

In addition to solving real world talent /recruiting problems, we offer our portfolio companies a variety of support services including the development and review of sales and marketing strategies, human resources, providing access to SCP’s network of portfolio companies, limited partners and contacts within the business, financial and academic communities.

http://www.scpartnersinc.com/

zpiester@scpartnersinc.com