Become a Better Salesperson by Selling on the Life-Cycle of a Business

Guest Contributor: Albert Luk
Albert's Posts - Albert's Site


This is an opportune time of the year to talk about the relationship between sales and the life-cycle of a business. As the summer ends and the autumn is upon us, it reminds me that everything has a life-cycle; trees turn leaves, flowers cease to bloom and crops are ready to be harvested. Most salespeople concentrate on product, marketing material and branding, but when was the last time you thought about using the life-cycles of businesses to boost your sales and cement client relationships?

Any regular reader of this blog understands the basis of any good SME sales strategy: establish trust, maintain frequent contact and seek opportunities to help. While these are fundamental basics, the tactics involved in such a strategy depends on the life cycle of the business. Having had the privilege of serving as corporate counsel to businesses in various life-cycles, I share the following experiences:

1. The "kids" need help beyond your product or service - be a part of their team. I often define start-ups/early stage businesses as "kids" - full of enthusiasm and energy for their business. At the risk of a gross generalization, most kids are great technicians - they know their product or service inside out; however, they may not have the experience or have developed the skills to know everything about their business (I readily admit there are obvious exceptions to the rule). Kids need a team around them to help them with their business beyond the goods or services they are selling. The priority of a sales-person at this stage is to develop a relationship by providing advice. The advice given may not be about the product or service being sold and it might not lead to an immediate sale, but providing this advice will build credibility with the kids. Those selling administrative support products and services (e.g.: sales tracking software, book-keeping software, computer hardware, accounting and legal services) have a particular built-in advantage at this point. While sales may be modest, it is these types of products and services that most kids recognize they may need. If the salesperson positions themselves as a resource for their team, the kids will turn to them for assistance when needed. This helps build trust and the salesperson may even find they are apart of the team. When a salesperson becomes apart of the team they should be focused on the long term relationship and not an immediate sale because eventually the kids become...

2. Teenagers! They need you to maintain constant contact lest you are perceived to be indifferent to their needs: Teenagers form that "mushy middle" of businesses- they are beyond start-up stage but not large enough to be considered "big business" or institutional. I typically define teenagers as businesses with employees and a significant amount of assets but not so great as to employ divisional managers, multiple vice-presidents or a purchasing/procurement department. Teenage businesses are like teenagers in high school - there is always someone new trying to get their attention - your rival is much like that new cute guy or girl in class. Teenage businesses are at a size where they are desirable targets for your competitors. If you have teenagers as clients or want to sell to businesses in this life-cycle, emphasis should be placed on maintaining contact with them, regardless of whether a sale needs to be made, to ensure you are not perceived to be indifferent to their needs. Indifference, whether perceived or real, is a leading cause of business loss and especially so in this business life-cycle.

3. Adults are mostly self-sufficient and you need to make sure you maintain their trust. Businesses in the "adult" life cycle are mature business with significant revenue and assets. Much like being an adult, their "team" has been established. They are not likely to make too many new friend/service providers. You are already part of the team or they are occupied by so many competing priorities that maintaining constant contact is neither required nor welcomed. At this point, the largest priority is maintaining trust. In my experience, most businesses in this life-cycle only switch service providers and/or product lines if there has been a betrayal of trust (e.g. quoting one price and billing substantially over that, openly putting your needs before your clients) or the product is notably inferior to the competitors. Thus, most salespeople and sales teams need to concentrate on ensuring they do what they say they are going to do and otherwise maintain trust.

There are always exceptions to the rule, but this may be an effective general guideline to help sell based on the life-cycle of your potential clients or clients. Best of luck!

3 Ideas To Help You Sell To Small Business

In addition to the tips and strategies I have shared this week on how to sell to small business, I wanted to give three more ideas that can push your SMB efforts over the hump:

1) Small businesses love FREE!
Entrepreneurs love free things and rewards. Even if it is something as inexpensive as a pen, small business owners will appreciate it and tell their friends about it. Many small business owners have limited sales and marketing budgets and their dollars are typically spent more on the sales side. They invest in the materials they need to close the sale such as fliers, business cards, websites, and salespeople. Typically they do not purchase marketing like branded products until the sales side has been taken care of so they appreciate your efforts. You may be used to having everything branded with your company name all over it from mugs to hats to duffel bags but a little thought goes a long way to recognizing your SMB clients. It makes for a happier customer and more referrals.

2) Focus on the information not the sales pitch
Small business owners can see right through your sales pitch. They do not want to see sales materials thrown at them and a salesperson banging down their door. They will often assume that they cannot afford your offerings if you look too slick. They like to be educated and feel that they are in control of the purchasing process. Give them the information they need such as case studies, white papers, third party awards, and testimonials. Keep the message simple to understand and focused on the benefits they can realize - then go for the sale.

3) Give pricing options
Pricing will be an issue with every small business client you encounter. It will not always be the most important factor, but it will always be high up on the priority list. Offer ways to slice and dice your pricing to show them that you are trying to work with them. Some options are to break down your product to give them exactly what they need, give a trial period at a lower price, have a discounted rate if they sign up their friends, and offer financing options. This last point is of particular importance as small business owners are often cash strapped as they put their dollars back into their business and wait for accounts receivable to come in on products they have already invested in and delivered. Offering financing options will always be a point of differentiation when selling to small business owners.

Positioning Your Product Or Services

The Brooks Group is a sales and sales management training and consulting firm that has helped more than 2,000 organizations improve their businesses through unparalleled training, follow-up, reinforcement and ROI-tracking programs.

They write a monthly Sales newsletter offering advice to businesses trying to improve their sales results. A recent issue discussed posionint your product or service for entrepreneurs:

Entrepreneurs often respond to salespeople by saying, "That doesn't apply to me." Or "my business is different, it's unique." It's important to realize that in the case of entrepreneurs, the owner and the business are practically one and the same. And what they're really saying is "I'm unique, but you don't make me feel that way."

Entrepreneurs are also strongly attracted to products and services that have been designed specifically for their unique situations. If it were up to them, entrepreneurs wouldn't buy a single product or service that wasn't designed and developed precisely - 100% - for their specific business, industry, application, or competitive environment.

Entrepreneurial buyers want to buy products or services that are practical, street-smart, and not theoretical because they want solutions that:

• Will eliminate complexity from their lives
• Won't strain the company's resources
• Won't put additional demands on their own personal time
  

Entrepreneurs often have little patience for complexity because it interferes with the hands-on, quick-action performance. They consider so vital to their personal independence.

An entrepreneurial buyer might be more receptive to your product or service if you alleviate some of their anxiety by saying something like: "Before we discuss our product let me stress that it is practical and street-smart. It's also been carefully designed for your unique business situation."