Understanding how a sales cycle works can help sole proprietors and small business owners in all industries set realistic goals for developing new customers and clients.
building momentum
Generating leads that become new customers requires building momentum. The analogy that works for me is imagining an old-fashioned steam locomotive rolling down the train tracks. Someone in the coal car had to shovel coal into the boiler to keep the locomotive running in order to build momentum and propel the locomotive forward.
Using referral sources, making cold calls, or finding leads through social media is like adding coal to the boiler. Be prepared for the labor when starting or rebuilding your sales cycle.
Generation of qualified prospects
Selling is not just about scrolling through the numbers. An effective sales cycle begins with finding qualified leads. Ask yourself the question: Who really needs what I’m offering??
Now, you may have several different answers to that question. A chiropractor can work with patients of all ages, including active tweens and seniors. This professional could create a sales cycle that deals with specific types of patients. During the month of May, before school is out for the summer, a chiropractor may offer specials on post-school adjustments to young students carrying heavy backpacks. This promotion should really start about 60 days before the launch date.
Perhaps a marathon or half marathon is happening in the area. The chiropractor could then start promoting the runners about 90 days before the event. That’s the beginning of the sales cycle and the generation of qualified leads, people who may actually want the service.
Share with potential customers
In my case, I offer article and website marketing to freelancers and small business owners in various industries. I am choosing a different industry every two weeks to contact. I’m asking if you would like more information.
My goal at this stage is to find those who want more information, which can be in the form of my website, a cover letter sent to them, or an initial appointment to learn about their needs and goals. This is the time to set expectations for how the product or service will perform.
Set a sales appointment
After an initial appointment, I schedule the sales appointment if necessary. I have ensured that the customer or client is ready to make a purchase and now it is a matter of addressing any specific concerns. If you would like more information, do not hesitate to make a business appointment. Instead, just move them after sharing the information. “Great, we can start on this or that date” or “Let’s start on —” and they’ll tell you what action they want to take.
making the sale
Have everything ready for them to buy the product or service. Don’t hesitate and don’t make it sound like a big deal. After all, they’ve already been through the sales cycle and if a prospect has made it to this point, then there’s no reason why they shouldn’t buy.
Time frame
Understand the concept of how long it takes to build momentum, generate appointments, and make sales. When I worked in the nonprofit world and built a program in Southern California, it took me about six or seven months to start getting referrals and local talks to recruit foster families and adoptive families. After a year, the referrals began to increase and we developed a comprehensive community marketing effort.
When I launched a small marketing company, we started with three clients. However, I worked hard on personal marketing our services over the next six months and saw a pick up in activity. It took me the first year to see a few referrals coming in and then after two years I started to see a solid stream of leads.
Freelancers and small business owners can set their own sales goals and expectations by understanding the sales cycle and knowing that it takes six months to a year of consistent marketing to generate qualified leads and make sales.