previous I next

Growth Versus Real Growth

Time for a quick lesson in sales economics 101. Very few salespeople, management included, appreciate the difference between economic growth and real growth. I bring this concept forward because I have seen many salespeople and sales managers base performance appraisals and productivity on the wrong indicator. Growth is a result of a strong, buoyant economy; growth due to outside factors such as low interest rates, high consumer confidence, high demand, and limited supply. Your business becomes the beneficiary of economic growth stimulated by a strong, active economy. You did nothing to stimulate it-you only reacted to it. This scenario often creates a false sense of productivity throughout the company as management proudly high-fives each other. In boardrooms, they exclaim: Arent we great, we are 15% ahead of last years numbers. Wow, were awesome. Whos kidding whom? Yes, you may be up 15% but so is everybody else in your industry. Youre all on the bandwagon together, riding on the coattails of strong economic growth. However, real growth is over and above economic growth-growth on top of growth. Real growth is stimulated by effective prospecting and is critical for long-term success. For example, if the economy generates 15% economic growth, your goal may be to achieve 5% real growth in addition to the 15%. Thus, when the economic wave crashes (they usually do) and the 15% growth evaporates, youre still left with 5% growth-probably 5% more than your competitors. Thats real growth. It doesnt take very long to see and appreciate the tremendous impact real growth has on a business. Salespeople and managers usually dont think about growth in these terms. Its time you did. Reevaluate your productivity and challenge yourself. Is my business growing, or is it really growing? Clearly, your objective as a sales entrepreneur is to drive real growth. Dont simply respond to a natural economic growth spurt.

li lll:ll

Where to Find Them: 22 Ideas

With that end in mind, I offer you the following 22 prospecting sources to help stimulate real growth within your territory and your business-ME INC.

1. Newspapers. Review the business section, want ads, and business articles to get company names and ideas as to whom you might want to approach. Look for corporate announcements as well. The newspaper can provide lots of ideas.

2. Industry Associations. Get a listing of companies and individuals who belong to specific associations-legal, medical, engineering, and so on. Consider offering yourself as a keynote speaker at their next meeting. They are always looking for ways to spice up their meetings-maybe youre the answer. If you are terrified of speaking to a group, bring along someone from your company who enjoys it. Your company will look good and youll get the leads.

3. Yellow Pages. This is an excellent source of businesses within your territory. Start calling from the back of the book with the Zs and work forward. Most salespeople start at A and never get past the Es. Chances are good that businesses toward the back of the book have never been called. You may want to consider purchasing Yellow Pages from other cities that are within your geographical territory. Alternatively, you can access Yellow Pages for any city on the Internet.

4. Vehicles on the Road. Get company names and phone numbers painted on the hundreds of trucks, service vehicles, and company vans you see every day. They may even have a toll-free number proudly displayed, so use your handy tape recorder to record the information. Then follow up.

5. Trade Shows. You cant get a faster introduction to a large number of customers all under one roof. I have met some of my largest customers at trade shows. However, dont be intrusive and try to sell them at the show. Rather, ask a few up-front questions to determine their potential then get a name to follow up with later. Call your local convention center or chamber of commerce and get a calendar of upcoming events.

6. Library. Use your local library. It often has current business publications, annual reports, and an archive of newspaper articles on micro-fiche. Make a copy of relevant articles, announcements, and want ads. Then put them in your prospecting file for future follow-up.

7. The Internet. The worlds largest library is at your fingertips. If its not on the Net, it hasnt been thought of or invented yet. Use it to retrieve valuable information about a specific industry, investigate new technologies related to your field, subscribe to mailing lists, tap into a newsgroup, and so on. The Internet offers a plethora of opportunities for prospecting and sources of information otherwise unavailable to you. However, I caution you: It can be time-consuming. Dont become a mouse potato and waste away selling hours or janitorial hours distracted by the fun of it.

8. Friends and Allies. Ask among your circle of friends and current business allies for referrals. They are often willing to help you out-simply for the price of asking. After all, the more people you know, the more people youre capable of knowing. As one of my friends said, Its not who you know, its who I know.

9. Breakfast Clubs. Consider joining one that helps you network. They are always looking for new blood, new members. Alternatively, offer yourself as a speaker-they often look for interesting people to feature as a keynote. Talk about an exciting, interesting new technology developed by your company or emerging trends within your industry. Heck, youll probably get a free breakfast out of it and its a great way to get your day started.

10. Old Files. Take a gander through old files in the office. Im sure youll find some orphan accounts-perhaps even some potential born-again accounts.

11. Target Markets. Pursue a specific profession and learn what you can about it. For example, it might be legal, medical, communication, transportation, construction, food service, and so on. However, dont try to spread yourself too thin. Concentrate on one or two specific professions and become an expert in that field.

12. Subscriptions. Subscribe to appropriate business magazines. They are often rich with corporate articles and advertisements that may introduce you to the new kid on the block or to a company you havent heard of before.

13. Referrals. Perhaps the most overlooked source for new business. Simply ask existing customers for a couple of names that they would be comfortable passing along. There are plenty of books and seminars outlining effective strategies of networking. I suggest you consider honing your networking skills because the return on your investment is like no other.

14. Business Directories. Several companies offer business directories that list all the businesses in your area. Listings include size, locations, presidents name, executives, revenue, product lines, and key contacts. These directories can be purchased for a nominal fee and can be broken down by geographical area, revenue, size, or by number of employees. Some directories have the option of cross-referencing phone numbers, addresses, subsidiaries, and parent companies. It can be a worthwhile investment.

15. Internal Customers. Nonsales employees can be encouraged to provide leads. An uncle, cousin, or a friend who works at a company might be a potential customer. Even the people in the service department could be very helpful to you. Some companies support this method by offering a financial incentive for every prospective customer they pass along. If the company doesnt pay an incentive consider offering one yourself-even if its only a $50 gift certificate for a local restaurant. People generally respond favorably to gestures of appreciation.

16. Observation. Keep your eyes and ears open. We are bombarded daily with thousands of messages-billboards, radio, advertisements, banners, TV, and so on. Look for anything new within or around your territory-construction, an information sign on a building, or remodelling in progress. Take an unfamiliar route to your existing customer to see whats going on in and around your territory. Dont drive by and wonder-stop in and find out.

17. Building Directories. Every office building has a directory on the main floor that lists the businesses throughout the building. I used to take a picture of it or recite the names into my tape recorder then follow up by telephone and qualify for any possible potential customers.

18. Social Contacts. This goes beyond your immediate circle of friends and family to include neighbors, members of social, community and religious organizations; former classmates and any other group whose members might buy the type of product or service that you offer. These social events are an opportunity to meet new and interesting people. However, be tactful when pursuing these contacts. Dont come across as the leech whos always looking for a lead-who looks at every social event as a potential sale. Simply have an informal business chat and agree to follow up during regular business hours or when its convenient.

19. Existing Accounts. Look for additional opportunities within your active accounts. We can get very complacent working with only one department or one division, sometimes overlooking other opportunities that are right under our nose. Ask for a current organizational chart and prospect the entire company-take your blinders off.

20. Acquisitions and Mergers. Read the business section of your local newspaper and watch for any announcements of acquisitions and/or mergers. Your favorite account could triple in size overnight and open up an opportunity to pursue new business-real growth. Armed with an endorsement as an incumbent, your chances of success within the new company are excellent.

21. Social Clubs. Consider joining a social club or a service club such as a Rotary Club, Lions Club, or The Chamber of Commerce. It not only gives you an opportunity to volunteer for a worthy cause, it is a great avenue for networking.

22. Cold Calling. I have saved the best for last. The dreaded cold call! The very thought of it sets in motion all sorts of immobilizing defence mechanisms and excuses. Most salespeople have somehow convinced themselves that cold calling is unprofessional, intrusive, and unnecessary. I hear them say: We dont make cold calls in our business. We get leads from referrals, tradeshows, ads, and our regular customers. Thats all fine