We've all heard old saying "throwing good money after bad" referring to losing more money on something rather than cutting your losses and moving on. Laura was doing same thing in her business -- only it was time she was wasting.After two years in business, she was still networking with wrong people. As a project management consultant, her ideal target market consists of large corporations with a designated budget for managing processes in their company. The problem is, she isn't talking to right people.
"I feel absolutely defeated. I'm not sure I can do this anymore. Maybe I should be selling something completely different. People either want what I offer but don't want to pay for it or they don't see value in what I offer. I meet prospects at networking meetings and call them to set up a meeting. Then I spend a day researching their industry, so that I can speak intelligently during meeting. Then on day of meeting, I spend half a day driving to and from their office. Within next few days, I put together a proposal for them and send it off. Then I follow-up with them every week to see if they want to move forward with project."
I felt need to jump in. "Okay, can I stop you for a minute? It sounds like you're spending a lot of time up-front. Let's say it takes you 3 hours to drive to/from and attend a networking event, 30 minutes to follow-up with a prospect to set up a meeting, 4 hours to research their industry to prepare for meeting, 4 hours to drive to/from and attend meeting, 3 hours to put together a proposal, and 1 hour to follow-up several times. That's 15 1/2 hours pursuing one prospect."
"And biggest issue here is that they may or may not end up being a qualified prospect because it doesn't sound like you spend any time during your initial conversation making sure they want your service, can afford your service and are person to make decision to purchase your service."
Laura was floored. "I never even thought about it that way. I just need to get more business, so I feel like I need to be out there meeting people and at least getting chance to send them a proposal. I don't really have anything else to do at my office sometimes. If I wasn't doing this, what would I do all day?"
Like Laura, many early-stage business owners feel better if they are busy, making calls, going to networking events, meeting clients, doing proposals, etc. But if you're staying busy just to stay busy, you end up spending a lot more hours working for a lot less money which usually results in feeling need to put in even more hours to make business "work."
To avoid spending time doing wrong things with wrong people, you have to take time to evaluate your prospecting process. It's all about defining what makes a good prospect for your business and qualifying your leads as quickly as possible before they get too far into your prospecting process. In Laura's case, if she formulated just a few questions she could ask leads in order to determine whether they were interested in her service, could afford her service, and were in a position to make decision to buy her service, she could save numerous hours.