Are there any definite “Do’s” and “Don’t’s” when you’re in “steep growth” mode?

There are many cliches that our mothers taught us. Remember, “Don’t talk to strangers.” and “When I say, ‘No.’, I mean, ‘No.'”? Great advice for a salesperson, don’t you think?

But some of them are appropriate. How about, “If you can’t take the heat, get out of the kitchen.” or “When you strike out, you just get up to bat again.”

Famous people give us advice, too! How about JFK? “Ask not what your country can do for you, but what you can do for your country.” Noble? Yes! Applicable to business? Of course!

How about Yogi Berra? Some might fit, like: “You can observe a lot just by watching.” “You’ve got to be very careful if you don’t know where you’re going, because you might not get there.” or “It ain’t over till it’s over.”

But, some just make you shake your head, like: “No one goes there anymore – it’s too crowded.” “It was impossible to get a conversation going; everybody was talking too much.”

So, reply with a few of your favorite Do’s or Don’t’s that you think will help those of us who are trying to grow our practices. If you remember who said it, please give them credit. If not, just note that you don’t remember.

I’ll start. How about, “Prospecting is like shaving. If you don’t do it every day, next thing you know….you’re a bum!”?

Incidentally, if you know someone who can contribute, get them to read, subscribe, and comment at www.theRAINMAKERmaker.com.

Rick

Yesterday, a client told me that a big deal they were expecting fell through. This is one of those reasons that I’m so leary about chasing those big clients we wrote about earlier. You invest all kinds of time, get emotionally invested, start spending your profit, and they pull the rug out from under what you thought was a done deal. When you’re a sole practioner you’ve probably just lost a chunk of your life. You have two choices. Either accept the fact that it’s a fact of life that you can’t sell them all, or start a “What about” list. Once you’ve got a complete “What about” list and you use it effectively every time you meet with a prospect, you will never miss again! EVER!

Now that I have your attention, I’ll tell you the problem. Your “What about” list will never be complete. However, I started my list 20 years ago and although it’s probably not complete, yet, it’s pretty extensive and consequently, pretty effective. What is it and how to you create and use it? Let’s do it with examples.

You pitch a client. They smile. Have fun. Appear to be ready. You close. They say, “I need to talk to my (wife, partner, boss, lawyer, accountant, etc.)” and you see your deal go out the window because you didn’t even know that there was a (wife, partner, boss, lawyer, accountant, etc.). “What about #1” = “What about advice when you talk to people like me about stuff like mine? Who do you typically bounce ideas off of?” and ask this what about on every single sales call for the rest of your life.

You pitch a client. They smile. Have fun. Appear to be ready. You close. They say, “Thanks for showing me your stuff. Now I’ve just got to find two other vendors who do what you do so I can get competitive bids.” and you see your deal go out the window because you didn’t even know that there was a bid process. “What about #2” = “What about your internal process? What other solutions are you looking at and who else do you have to look at before you do anything?” and ask this what about on every single sales call for the rest of your life.

You pitch a client. They smile. Have fun. Appear to be ready. You close. They say, “We really didn’t know what to expect money-wise. Now that you’ve told us, we can go to the CFO and tell him what we need.” and you see your deal go out the window because you thought all companies this size had enough money in the bank or a credit line. “What about #3” = “What about money? Have you established a budget? arranged financing? have the cash in the bank? etc. etc. etc. everything about money” and ask this what about on every single sales call for the rest of your life.

There are 1000’s of stalls, lies and objections that a prospect can throw at you when you try to close so there are 1000’s of “What abouts” that you’re gonna need to incorporate in your pitch prior to the close so that when you do close, the prospect has nothing left that you haven’t handled.

Incidentally, if you’re a reader and you haven’t already, check out Dave Kurlan’s newest book Baseline Selling at http://www.baselineselling.com. If you already have a “What about” list, but haven’t been able to use it effectively or if you’re having a problem creating your list, send me an email and I’ll introduce you to the right person at http://www.salesdevelopmentspecialists.com.

Praying for rain in your back yard,

Rick

I was talking with a client today and we were talking about the relationship between big clients, important clients and controlling clients. Let’s look at two examples. In the first case, you’ve got 5 clients and you’re billing $2,000/week in total. Let’s also say that you’ve got one client that you consistently bill $1,200/week. In the second case, you’ve got 5 clients and you’re billing $2,000/week in total, but in this case, each client pays you $400/week. I’m keeping the numbers small because it’s much better to learn our lessons when the risk is small than when it’s life threatening. So, page two. Your biggest client goes away. (Files bankruptcy, changes vendors, whatever….doesn’t matter. You’re out!) In the first case you just lost 60% of your business. You have an emergency. You might be out of business. In the second case, you lose 20% of your business. You’ll need to replace it. You might have to tighten your belt. It won’t be fun, but you’ll probably be able to stay in business. In the first case, your big client is very important to you. He’s keeping you in business. As he goes, so goes your business. He’s absolutely in control. In the first case, if your biggest client says that they need you to cut your pricing by 20%, you can refuse and potentially lose 60% of your business, or you can agree and lose 12%. In the second case you could refuse and potentially lose 20% or agree and lose 4%. I hate doing the numbers, but it’s pretty easy to see that although average clients might play games, you’ll have more control than when the giant throws their weight around.

I’ve heard it suggested that no one client should represent more than 20% of your business. I’ve also heard the more conservative recommendation that no client should be more than 5% of your total business. Whichever figure you believe, the result is the same. You’ll be more secure and in control than if you have a giant client.

So, what do you do when you have the opportunity to work with a giant? Refuse? Take a chance? Post your comments and I’ll give my suggestion later.