September 2008

The Business Selling Cycle

Unlike retail, in which sales can be instantaneous from promotional efforts, the business selling process is more complex and elongated.

Typically consulting and other businesses operate via a multi-step process.  One reason for this is that the decisions are larger and often more people are involved in the process.

The mantra of the consultant is the generation of leads.  Leads are either projects or clients who have work.  The goal is to obtain leads which can then be developed into projects. 

Thus begins a series of contacts leading to proposal preparation and selection.  Some leads will be cold, in that there is no prior knowledge or relationship. 

As a rule, the best way to be successful is to create relationships with potential clients in advance, so that you are already short-listed before the next project is announced.  Some clients already have a pre-approved list of vendors and consultants.  This makes their decision making process easier, as they don’t need to go through a screening and evaluation process for every project.  Obviously, it is important to get on the list before a project is issued, so that you don’t have to prove yourself every time.  Ask if there is a list of qualified clients maintained.  If so, then ask what it will take to get on the list.  This can become an important focus of your efforts.

The marketing process is one of establishing relationships and qualifications in advance of project announcement.  This is more important than a low fee.  The client is looking for reliable, trusted consultants, which is more important than cost.  Underlying this decision process is the fear of the cost involved in time and money should an unreliable consultant not perform.  Another factor is the risk the employee of the client is taking.  If his superiors feel he is working with marginal or unknown consultants, he is in a vulnerable position.  If problems arise, which may be no one’s fault, having hired a reputable consultant provides cover.  Besides, good consultants have experience working out of a tough situation.  This is a valuable asset.

Do not expect instant results from your marketing efforts.  And plan accordingly if you are just starting-up for slow growth of a client base. 

Several ways to offset slow startup growth are:

• Pre-establish client relationships, so that your start-up begins with a job or two in hand.
• Joint venture with an established consultant or firm, who has an established track record and inside access to a project or two.
• Identify those projects that have a good percentage of success and a short decision cycle.
• Seek referrals from existing or past clients to open doors and establish credibility more quickly.
• Pre qualify leads and clients to eliminate those projects and situations that don’t fit.