How To Deal With Red Flags
Article Overview: One of the biggest mistakes 80% of salespeople make when qualifying is to overlook or not react to obvious Red Flags prospects give during the initial call.
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How To Deal With Red Flags
One of the biggest mistakes 80% of salespeople make when qualifying is to overlook or not react to obvious Red Flags prospects give during the initial call.
In their haste or desperation to "generate a lead" or to "fill their pipeline," most sales reps hope that the possible objection they just heard will miraculously go away once the prospect sees their information or product or service, etc.
But you all know from experience -- it never does. In fact, the law for calling back leads is that:
"Leads Never Get Better."
What appears to be an objection or deal killer always is.
Someone wrote me once about a prospect who wasn't calling him back only to find out the prospect was leaving the company. He wrote me and said, "I guess intuitively I knew he wasn't the right guy to make the decision anyway."
And I'll bet he knew intuitively because he heard (but didn't question!) the Red Flags that came up during the initial qualification call.
So how do you deal with obvious Red Flags? Do what the Top 20% -- as soon as you hear something that triggers your intuition or that gives you that sick feeling in your gut, stop and ask the tough questions!
Here's how you do it:
If someone says that they usually buy from ________, but would like to see your information, ask:
"Why would you switch vendors?" Or
"How many other companies have you looked at in the last six months?"
And then: "And how many did you go with?"
If someone says that they will pass it on to ________, say:
"Thanks. So that I make sure I'm not wasting her time it's best that I speak with her for just a few minutes. Can you please tell her that (your name) is holding please?" (If you're then told they are not available, make sure and get their direct line or the person's extension and keep calling until she picks up.
If someone says that they'd be glad to look at over, ask:
"Great, after you do, if you think that it can help you (or your business, etc.), when would you move on it?"
And so on.
The bottom line is that if you want to close like the Top 20% then you have to start questioning the Red Flags.
Remember: It's better to disqualify the non buyers early then to spend your time and energy chasing and pitching people who are never going to buy.
Plus it means that you have more time to find real buyers.
So this week, write up questions to the Red Flags you currently get and begin using them! You'll feel so much stronger as a closer, and you'll begin making more money. Believe me, it's a win/win.
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About the Author: Mike Brooks
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Who inspired you to start?
- When I was a teenager I read "The Art of the Deal" by Donald Trump while on a road trip to New York City. It helped inspire me to want to start my own business and is also one of the reasons why I have created so many famous entrepreneur profiles. I believe that by modeling the success of other entrepreneurs you too can become successful.
Who was it that inspired you to start your business?
Trump and Stewart
- I really enjoyed Trump: The Art of the Deal and The Martha Rules. I think the best advice you can get is from people who have made it and not just consultants who haven't been there. Evan's site is great because of all the famous entrepreneurs and their advice directly from them.
Donald Trump and Martha Stewart are 2 great examples of successful entrepreneurs and the books are written in their own words which I find extremely valuable and motivational.
Re: Obama Wants Social Security for Illegals
- [quote="Alan Mater":2puakyzo][quote="Lucy Wu":2puakyzo]I think America's biggest problem right now is clearly the recession, and that should be the main focus as of now.[/quote:2puakyzo]
I agree. Do you think President Elect Obama is doing or will do what is best in terms of beating this recession?[/quote:2puakyzo]
Unfortunately, I think Obama is going to pull another "Roosevelt." According to economists, Roosevelt's plans for the New Deal extended the Depression by 7 yeasrs...
We can already see today that nothing has "changed." Incompetent bankers, lenders, and businessmen get into trouble, the politicains vote to give them billions of dollars of *our* money to bail them out...and yet there is no oversight of how the politicians are going to spend that money! They can do anything they want with it including bailing out the auto companies.
Frankly, I sure do wish I worked for Chrysler right now. They've shut down all their plants... and yet every worker will continue to be paid their full salary...for sitting around the house doing absolutely nothing. (I wonder if they'll get Christmas Eve and Christmas Day triple time pay, too.)
Re: Obama Wants Social Security for Illegals
- [quote:21pbp7ux]Unfortunately, I think Obama is going to pull another "Roosevelt." According to economists, Roosevelt's plans for the New Deal extended the Depression by 7 yeasrs...
We can already see today that nothing has "changed." Incompetent bankers, lenders, and businessmen get into trouble, the politicains vote to give them billions of dollars of *our* money to bail them out...and yet there is no oversight of how the politicians are going to spend that money! They can do anything they want with it including bailing out the auto companies.
Frankly, I sure do wish I worked for Chrysler right now. They've shut down all their plants... and yet every worker will continue to be paid their full salary...for sitting around the house doing absolutely nothing. (I wonder if they'll get Christmas Eve and Christmas Day triple time pay, too.)[/quote:21pbp7ux]
This is what happens when the Government gets involved and puts its nose where it shouldn't. Let the market correct itself. There is no reason for the Government to bail everyone out. If the businesses, mainly banks, weren't corrupted with greed, this wouldn't have happened. They are and it did, so let them dwindle away and pay for their mistakes. That's what any small business has to do. Why should they be any different. They have gotten away with it for over 10 years! Surely they should have seen this coming.
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Chris[/quote:21pbp7ux]
It IS sad. What's more sad is the fact that Obama had the media wrapped around his finger, and still does. The media is just as corrupt as the banks.
Different Types of Funding
- Finance for business can be obtained through a number of different sources.
Let's review some of those channels to help you decide what's right for your business needs:
Grants
There are over 930 different EU and UK grants and loans available from over 100 issuing bodies. This is the cheapest form of finance and an important part of the funding package that companies and individuals need. We can help you find your way through this maze.
Technology
Micro Projects: 50% of eligible costs up to £20,000
Research project: For a technical and feasibility study of an innovative idea for new technology 60% of costs up to a grant of £75,000.
Development project: For development up to pre production 35% of costs up to a grant of £200,000
Developing an innovative idea: valuable for small companies and individuals at the start of a technical project: 75% of costs of hiring a mentor and consultants.
Export
To start exporting or moving into new markets grants of 50% of costs up to £20,000 each.
Training and Education
Knowledge Transfer Partnerships, Achieving Best Practice in Your Business, Investors in People
Modern Apprenticeships
New Deal for various grants.
Environment
BOC Foundation for the Environment: 25% to 50% of Project cost, typically £20,000 to £100,000
Clean up Fund: Emission reducing equipment up to 75% of cost
Community Chest Fund: Up to £25,000 for projects near active SITA sites
High Impact Fund: £150,000+ for larger projects near SITA sites
Assisted Areas
Regional assistance grants of between 10 and 35% for capital expenditure in less favoured areas of the UK.
Loans
Loans are an excellent source of finance if you have suitable security to borrow against or a reliable earnings stream. This needs to be planned and presented well to obtain funds.
Credit cards
Provides up to 56 days free credit if you play the game!
Overdraft
Banks are surprisingly supportive when presented with a well thought through plan and competent management.
Bank Loans
Lenders tend to look for a good business plan and security. Typically the loan is approved by a centralised back office function rather than the person you meet. Terms and rates depend upon the risk. Repayments can be very flexible to meet your specific needs.
Mortgages
These can include flexible repayment terms to meet your business needs. This can even be incorporated into your overdraft finance so that you have one flexible account for both personal/ business mortgages and overdraft
Small Firms Loan Guarantee Scheme
Up to two years trading: Up to £100,000
Over two years trading: Up to £250,000
However these are difficult to obtain and are a loan of last resort.
Export Guarantee Scheme
This is government backed insurance against appropriate export documentation.
Mezzanine
This is a halfway house between loan and equity. It can be an innovative way of raising funds for the more established business. Mostly for expansion capital.
Equity
This is not as easy as the papers would have you know. Only 1% of business plans received by Venture Capital Funds are successful. However, a good business proposition consisting of a strong demand for the product or service, management track record and a sound financial plan will enhance the chance of success.
Business Angels
These are high net worth individuals who are successful businessmen looking for investment opportunities. They can provide both time expertise and money. Typical investment size is £25,000 to £250,000 but can go as high as £2m for the right opportunity. Exit within 3-5 years.
Venture Capital
These are investment funds seeking high rates of return. However typically investments are over a million pounds. Some funds are targeted at lower amounts depending upon the sector and region. These funds are looking for exponential capital growth over 3-5 years.
Asset backed finance
This can cover machinery, sales invoices even sales orders. It can be a very flexible source of finance to the growing business
Leasing
This will cover your capital expenditure and spread the cost over a three to five year period. It is particularly useful if you do not have taxable profits to maximise your capital allowances.
Sale and leaseback of a property you own is another good source of funds.
Factoring
Factoring offers a sales ledger administration and debt collection service. Up to 95% of an approved sales invoice is paid within 48 hours, quicker if required. Credit protection is also available to protect against a bad debt. The Factor will own and place a first charge over the book debts and they might also take other charges, depending upon the strength of the financial information.
Invoice discounting
Invoice Discounting can be Confidential or Disclosed; it depends upon the strength of the financial information. The service is the same as Factoring, except that the sales ledger administration and the debt collection is the responsibility of the client and not the Factor. Pre payment of the approved sales invoice is still up to 95% and the factor will still have a first charge on the book debt and therefore own the debt. This service can also have credit protection cover. All sales invoices need to be for a business to business debt, and some proof of delivery is generally required.
Trade Finance
This is funding provided against stock purchases, signed contracts and orders whereby the funder will prepay a certain percentage of the value
Pension fund
It may be possible to use your pension funds for a loan back to the business
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