The other day, I was talking to our young sales guy about his sales prospects. I was just trying to get a handle on which accounts might be closing in the near-term.

As we went through each name, the salesman began to tell me about one particular account that he had forecasted as “90% closed.”

In other words, the only thing that was missing from this deal was the check and a signed contract.

I probed some more and in doing so, I asked him when it was that he had last spoken with the economic buyer for this account.

His answer floored me … “November,” he said, “the first week of November.”

I looked at my watch. I wanted to reaffirm that it was January 3rd.

I was amazed. This was a substantial deal --- probably in the top 10% or 20% of all deals typically done by us (from a dollar standpoint) and yet here he was, predicting the imminent arrival of a check and contract from an individual whom he had not even spoken to in the last two months.

I thought back to the last time this sales guy and I had talked about this account. Reviewing my notes reminded me of the fact that this particular company had been talking about bringing a new marketing manager on board. I had noted that he would likely begin working for this prospect sometime around the first of the year. So, I brought this up as well. “What about the new marketing manager you told me would be in place ‘sometime in late December/early January?’” I queried. “Did they ever bring this person on board?”

Again, his reply astounded me. “Yes," he said, “they have done just that.”

Which prompted the next question, “So, who is this person?,” I asked, “And where did he/she come from? And, what are his/her proclivities when it comes to running a marketing team?”

He drew a blank on all of those questions. Our man just didn’t know.

Such are the frustrations of a small business executive. Just when you think you have your sales force properly trained and thinking like sales people, an event like this says otherwise.

So it got me to thinking --- and therefore I promptly took a pen and jotted down some notes about what is important (and what is not so important) in terms of understanding a prospective buyer.

Hence, this column.

Here we go --- here are five important things that everyone must know about their company’s sales prospects:

(Note: Because selling into corporations is a little different than selling to start-ups and smaller, privately-held businesses, I must begin by pointing out those differences. Here, generally, are the primary differences between these two niches):

Public Companies

Public companies are quite easy to “read” as their sales and other relevant data are typically readily available. The key to selling into large, corporate environments is to understand who all the “players” are in the buying chain. If you’ve ever studied Miller-Heiman’s rules on strategic selling, you already know most of what you need to know to succeed in this environment.

And if not --- well, it’s Miller-Heiman on Strategic Selling. Google it now!

Private

Private companies are quite the opposite in terms of garnering statistical data. Because they are private, you can only get your numbers from companies such as Dunn & Bradstreet and/or Hoover’s. But remember, much of the information accumulated on a smaller company by D&B, is, and for example, self-reported. (I learned this the hard way … and it’s a whole story in itself.)

With these points in mind, then, here are five important and essential questions that really need to be investigated by a salesperson hoping to close business:

1. Who owns this place? – Recently, I met with the owner of a pretty fair-sized car dealership. Attending that meeting with him was his oldest son.

   After no more than ten minutes it became quite clear to me that the son was much brighter than most, and so within a very short while, he had more or less taken over the conversation. Moreover, the questions he asked and the comments he made told me that he would soon be taking over the company’s CEO position as well.

   Why was this important? Well, for one thing, any strategic decisions made by this father-and-son team would become more important to the offspring than the father. Thus, it was imperative that our salesperson make sure to address any longer-term issues to the younger of these two individuals.

   As a privately-held company, I was probably looking at the next owner. So, we had to find out just how this kid thought. Was/is he an individual with brand aspirations? Or, is he more of a “go-slow” guy --- someone who simply will not advance his time table just for the sake of growth?

   In a public corporation, almost none of this would matter.

   
   

2. How are they doing? – This is information that any salesperson selling any product or service absolutely needs to know. What are revenues; and what are the big impediments to those revenues?

   Once again, this question is easily discerned when the object of the investigation is a publicly-held corporation. That corporation is obligated to provide data on all aspects of the business. So, it’s there and it’s honest and accurate stuff.

   But remember, corporations are carved up into divisions. And you might just be dealing with one of their “Dog” divisions. In other words, you might be in a “Land That Time Forgot.” (I know this because I’ve been this.) Remember, losses are sometimes “OK” in a corporate environment. Particularly if those losses are “assigned” to a particular “Dog” division.

   Therefore, and if you should find yourself in a “Dog” division, don’t necessarily panic. Sometimes these buyers not only have a significant budget, but they may buy even more of your products and services as they flail around, trying different “savior” options.

   A privately-held organization will not provide data as readily. Here, you’re going to have to deal in percentages and heuristics. In other words, you’re going to have to “infer” such things as “gross and net annual sales,” and the like.

   
   

3. Who’s the person you’re hitched to? – There’s an old bromide in all businesses: “You are who introduced you.” That is to say, if the guy that brought you into the business is a schmuck, then you, and unfortunately, are also at least “schmuck-ish.”

   Sorry, but it’s true.

   But if the person that brings you into the company is a “hot riser,” well, then you’re probably in great shape!

   Hot risers are easy to spot --- they get nods of respect as they walk the halls, they usually have offices with boxes still unpacked (they’re between promotions), and more often than not they will have an assistant.

   Should you be so lucky as to hook up with a hot riser, hang on with both hands!

   Unfortunately, this coin has two sides. I really don’t think I need to explain the other side.

   
   

4. What’s important in this business? – And here, I’m not referring to strategy. No, “what’s important” is whatever the top individual in the company feels is important. If you’re dealing with a public corporation, finding out what’s important is quite easy, as it is written out for you on the first or second page of the annual report.

   It’s called the “President’s Message,” and the president’s message spells out, often in great detail, exactly what the big plans are for this company, going forward.

   Some of the things to look for are:

   • Is this a “green” company? Or could they not care less about sustainability.
   • What are the growth goals of the company. For example, are they interested in revenue, or market share?
   • Do they promote from within, or believe in bringing in outside personnel. Things like that.

5. Lastly, you need to learn what their customers want! – Could anything be more important?

   Remember, any company you call on is driven not by its own needs, but instead by the needs of its customers.

   And this, dear friend, is what you and your sales team have got to find out. There is a very simple way to figure this out. Ask! Believe it or not, most salespeople never ask.

   Maybe their customers are unhappy with the quality of the products and services your prospect is delivering (or, not delivering)? Or maybe your prospect’s basic product training package is deficient? Maybe they need to learn how to better deliver their products/services? Maybe they are just poor communicators and need to know how to short-circuit most of the “expedite” calls and emails that come in --- this may call for a complete re-vamping of processes and procedures.

Hopefully, this column sparked some thinking. So hopefully you won’t have to be surprised by what you learn from one of your young sales people.

I don’t know about you, but the older I get, the less and less I dislike being surprised!

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