How to Pre-Qualify Your Business Prospect

How to Pre-Qualify Business Prospects

Next time you go to meet a business prospect, consider this startling national statistic (US): On average, it costs business owners over $100 every time they leave the office to do a face-to-face with a prospect. More if you buy them lunch!

If you're meeting prospects without making many sales, it might be because you aren't pre-qualifying them before agreeing to meet. That's fine if your real agenda is social. If not, it's time to set some rules.

At minimum, a pre-qualified business prospect must:

Need or want your service and/or products
Be able to afford it
Be willing to pay for it as agreed.

Not everyone you meet is a business prospect. We've all heard the opposite from the "gurus," but it's simply not true. As legendary UCLA head coach John Wooden said, "Don't mistake activity for achievement." Target your market and give your time and attention to prospects who can and want to do real business with you.

You can save a great deal of time and money by pre-qualifying your business prospect over the phone. If you listen closely, he or she will indicate whether it's worthwhile to pursue their business. And you'll save over $100 each time it isn't! (The $100 includes all expenses, the largest of which is the value of your time.)

Competetive leverage

Arguably the fastest way to pre-qualify a prospect is to market to people who hire your competition. Why? They're already buying! Too often, however, once we discover that a prospect buys from the competition, we give up and move on.

Don't make the mistake of assuming that you can't persuade them of the benefits of giving you their business. Look for hints of where your products and services can be more beneficial than what your prospect currently receives. You might be surprised how willing they are to listen.

Another time-saving tip: Before agreeing to an in-person meeting, make sure the person you're selling to has the authority to make purchasing decisions, or directly advises the decision-maker.

If your business prospect has to go through two or three levels to get approval, you might have to return for repeat meetings ... each costing you over $100. It might be worth it, depending on the types of services you're selling. But most of what an information-gatherer needs can be delivered by phone, mail, email, or on your company website.

Finally, once you've pre-qualified a business prospect, don't give up too soon! You may have to make several contacts before getting the sale. Continue to underscore the benefits of going with your company during each conversation, and ease your prospect toward making a purchasing decision.

You'll find your sales ratios growing along with your profits, and have more time for other important matters when you pre-qualify your business prospects by using these tips.

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