11 Step Process For Continuous New Business Development
1. Goal Setting. Pick the dollar figure for the sales you wish to attain for the year or to add to current sales. Make it realistic. A desired salary is a good starting point for a new or small business. Setting a % increase over last year may be more appropriate for established companies. A financial goal is needed to help determine how much business you must conduct.
If you want to do $250,000 worth of additional business, you need to determine where that business will come from. Will it be five $50,000 orders or 250 $1,000 orders? Do you have the staff to handle 250 orders or will your operations' expenses go up if you hire temporary staff to handle them? How does this affect your profitability and is your projection of $250,000 realistic? In order to accomplish your goal, you will need prospects and customers.
2. Prospect List. There are many places to acquire prospect lists. You usually have to purchase them but not always. You can get lists from list brokers, associations, magazines, networking groups, Chambers of Commerce, and other companies that have target groups similar to yours. Or you can solicit contacts
via social media like LinkedIn, Twitter and Facebook. You usually pay more money for newer, more accurate, and more specific information. Remember, you get what you pay for.
3. Qualifying Prospect Calls. Regardless of where the list comes from, it will be necessary to qualify it before you spend marketing dollars sending out your communications pieces. No matter where you get a list or prospect name, you must do two things: check the accuracy of the information and make sure that this contact is the real prospect, the decision maker. Do not spend your valuable time and money chasing the wrong person. If the person you are dealing with is not the decision maker, then he or she should at least be an influence.
There are many people within a company who will gladly take the time to see your presentation. This does not guarantee that he or she is the correct person. Do your homework up front and increase your chances for success. Do not try to sell over the telephone at this stage.
4. Database. Take your prospect information out of the shoebox and put the information into a database. The database will allow you to retain vital information about prospects and customers, such as names, titles, addresses, telephone numbers, fax numbers, e-mail addresses, LinkedIn, Facebook and Twitter names, value of last sale, size of opportunity, timing for decisions, next steps, etc. Modern databases allow you to input all kinds of information and to draw the information together in any combination you desire.
There is virtually no limit to the information you can store in a database. Use it to organize opportunities from the largest to the smallest, coordinate your efforts geographically, and stay in touch with prospects and customers. Modern technology has made it very easy for a small business to manage its new business development efforts with relative ease. You can contact and market to many more prospects than ever before. There are several inexpensive contact management software packages available. They will make your prospecting ten times more efficient and effective. See contact management section.
5. Lead Generation Package. Do not make cold calls if you can help it. Before you contact a prospect, send a lead generation package. This could be a postcard, a letter, or a simple flyer. Address it to the most qualified prospect in the decision making process. Print it and send it by mail rather than emailing it. Do not try to tell prospects too much. If you send a lot of information, prospects will either become overwhelmed and not read any of it or read it and think that they now have all the information they need and don’t have to see you in person. All you want to do is whet their appetite. Tell them a little about your product or service, such as who you are, what you do, and why you are different from the competition. When prospects do hear from you, they will be more receptive to your company.
6. Lead Generation Follow-up Call. Make sure that prospects have seen your lead generation piece. Determine now if they can use your product or service. Do not try to sell over the phone at this stage. In most cases, you will not be able to do justice to your product or service and could possibly lose the opportunity. Instead, set up a meeting and put a face to your name. (If your product or service lends itself to telephone sales and it is not cost-effective to meet in person, sell it over the phone.)
7. Interested Or Immediate Need. The prospect has an interest in what you are offering. You will need to arrange a first meeting or a presentation.
Or No Need. The prospect may not have a need at this time for what you’re offering. In this case, it is wise to track him or her with follow-up calls, newsletters, etc. He or she may need you in the future or your contact may move to another company and be replaced by someone who decides to try you as a new supplier. Anything can happen in an organization. Be hopeful and enthusiastic and do not lose touch with your prospects.
8. Meeting Presentation Package. First meetings can be tricky if you do not have a plan. Make sure you discuss the agenda or expectations of the meeting with your prospect. Is this a briefing meeting or a chance for you to present your
qualifications? Is there a real need for you to fulfill or is this an opportunity for the prospect to interview new potential suppliers? You should not be going in to do an elaborate presentation because you don’t yet know what he or she needs. You could spend much of your presentation time on a subject that is of little interest to the prospect and completely miss his or her need.
Be prepared and remember, your job is to identify what the prospect needs, then come back with a well-thought-out, focused proposal outlining how you can help him or her solve a problem. A rule for first meetings is to spend 80% of your time
listening and 20% talking. At this time, you may also introduce some additional information on your company.
9. Proposal. The prospect is interested in your services and wants to see a proposal in writing. In some cases, you could send the proposal, particularly if it is a price based request. In other cases, you will be required to make a formal presentation to a prospect and his or her group of influencers and decision makers. In either case, you will have a limited amount of attention from your audience.
They will only spend so much time reviewing the proposal. In person, you will have a specific amount of physical time. Before you meet with the prospect, ask how long you have for your presentation and who will be participating in it. At the
presentation, avoid unnecessary background information, review the opportunity, and get to the point quickly. Backup data and more information on your company can be included in the written proposal that you leave behind. If the audience wants to know more, they will ask for it later.
Each proposal and presentation is unique. Whether it is a live presentation or a written submission, do your homework, research the opportunity, and be as prepared as possible. Ask and answer all the questions in an organized, concise manner. Part of the prospect’s decision to go with you may be based on the quality of your presentation, both written and verbal, not just on the products and services you offer or their prices.
10. First Job. Congratulations! Remember, it is an opportunity to prove yourself, so don’t blow it. Follow up with the customer to make sure that everything went well. Many unhappy customers won’t tell you why they are unhappy. They will just stop calling you.
Or No Immediate Need. Send a thank you letter. Track the prospect, send him or her newsletters, etc. Circumstances change. Your job is to get on your prospect’s shopping list, preferably at the top of it.
11. Ongoing Relationship. At this point in the relationship, you have the opportunity to introduce new products or services to your customers. Keep in touch with them.
For assistance with you new business development visit www.BiznessCentral.com
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