Having a long list of potential clients seems exciting at first. It may seem like you've got all the potential clients you need right at your fingertips. But how many times have you ramped yourself up to give a pitch or proposal meeting thinking it would turn out with a sale, but in the end you found out you are pitching to the wrong person? We've all come across prospects who get all the way to the end of the sales funnel only to discover they don't have the funds for your services, they simply don't need them, or are in other ways not the type of client you want to be working with.
Not only is this frustrating because you nailed the pitch, but the time and effort could have also been much better spent on a more qualified prospect.
What is pre-qualifying and why is it so important?
If you're spending too much time with your sales team(or being the sales team), it's time to get clear and find out what is keeping you from moving forwards. One reason could be that you are spending too much time on clients that aren't worth it. But we know that not all clients are worth pursuing.
Pre-qualifying is a process that helps you decide whether or not a prospect is a good fit for you before you invest too much time in the relationship. Ultimately allowing you to spend more time on prospects that are a good fit and will be more fruitful for you and your company.
1. Evaluate the opportunity
Sometimes we spend too long selling our services that we never take the time to truly understand the needs of the person on the other side of our pitch. Before you get into the details, ask questions that help you understand what the person on the other end of the pitch really needs. Sometimes they're searching for the cheapest option, sometimes they're enquiring on a whim with no real intention to buy. The worst-case scenario is that they have no real intention to work with you - and that's okay. In order to save us the time and effort on that prospect, we need to find it out early. The goal is pre-qualifying is to understand each prospect's motive. Sometimes, you'll find the right client has the right budget, and is looking to work with you. In that case, spend the time on the proposal and sign them up.
2. Determine the fit
Not every prospect is going to be a good fit for your company. Working with a client that is not a good fit can cost you a lot in time and resources that you could apply to better clients. To find out if they're a good fit, get to know their goals. What does success look like? What do they expect from the project? By doing this you'll start to understand their attitude and how they'll measure your success. If something doesn't feel quite right, go with your gut feeling. The chances of you changing them are very slim.
3. Talk money
One of the biggest reasons clients end up not signing up is because the offer does not fit their budget. A lot of people are afraid to talk money and it seems too personal, but the reality is, it's part and parcel of business. The best way to tackle this topic is to ask if they have a budget in mind for the solution they're after. If you have an idea of what the fee for the work might be, let them know. Word it in a way that mentions the value you're going to bring them first - something like "For us to solve the problems you're facing by helping you rebrand so that you can attract more high paying customers our fee is going to be in the region of £x to £y - does that fit your budget for this project?"
Summary
So there you have it. Three things to consider when pre-qualifying your prospects. Remember if they don't fit with you, they're not an ideal client and should not be taken on. Whittle down prospects early in the process so you spend time with the prospects that really matter to you and your business.
