Sure, you need the business… but when is it time to walk away?
2009 presented small businesses with many challenges, mainly as a result of our current economy. Surely, some of these challenges will carry into 2010, but there are definitely signs of a rebound. There are also things that you can do in your business that can help make a positive impact, even during difficult times. One of the most helpful things that comes to my mind is qualifying your prospects and knowing when to turn down business. Sounds silly, I’m sure… but hear me out.
Prospecting is the life-blood of business. After all… without it, we would have nobody to offer our products and services to. I think that prospecting becomes even more important for smaller businesses, especially those with five employees or less. With a smaller staff you obviously have fewer people to share the workload and time becomes the most critical part of your business. Often times small businesses can become overwhelmed by these time constraints. We need to find ways to maximize our productivity, while finding the time to keep our prospecting efforts active.
To me, there is no bigger waste of time in business than dealing with prospects who are the wrong fit for your business offerings. For example, in my business it takes me about ten minutes to gather the information I need to provide an insurance quote; however, it takes me about an hour to shop for the right products for that prospect, then it takes time to develop a professional proposal for them. Then it takes even more time to follow back up with the prospect… phone tag, scheduling conflicts, etc. Think about how detrimental this cat and mouse game can be for your business if you are working with the wrong customers.
Things that can help improve your prospecting efforts:
- Take some time and prepare a thought out list of important questions that will help you determine if the prospect you are talking with is really a good fit for your business. Don’t waste their time and save yourself some!
- If you are working with a prospect who is just difficult to work with, don’t hesitate to make the decision for you both to go separate ways – even if they appear to be a profitable customer. Some people are just not meant to do business together, and that’s okay!
- Schedule a block of time every week where all you do is spend time prospecting. Consistency is the key.
- Manage your prospects, rather than let your prospects manage you. What I mean is this: Say a prospect returns a call while you are busy on another important task. It is okay to let that call go to voice mail. Just be sure to be timely in a call back once you complete the task at hand. You’ll be surprised how much better that return call will be when you are in the mindset to give that prospect your full attention.
This is all just something to think about as we enter the New Year and we restructure our business plans. Be prepared to prospect actively and be prepared to handle the many situations that will arise!
Chris Jordan is an independent insurance agent in Atlanta. He specializes in auto, home, life, and business insurance . As an independent agent, he can place your policy with a number of different carriers! His promise is to offer you a level of service you have never seen before!
