perlo
01-18-2008, 10:55 AM
By Doug Berg
If winning new clients were easy, gurus wouldn’t be giving $1,000 seminars on the topic, and you wouldn’t see "Dummies" guides to closing a contract deal.
Let’s face it—winning a contract can be one of the most bewildering parts of running your consulting business. It doesn’t have to be such a tremendous dilemma. I’ve worked with hundreds of very successful consultants through the years (and been one myself), and I’ve found that those who flourish take these 8 steps:
1. Prepare to make a great first impression
You never get a second chance to make a first impression, and you make a great first impression by being prepared. Research the company and subject matter, using any available means, including your contacts at the company. Study the company's history, key personnel, current technologies, existing and foreseeable problems and solutions. Preparation bolsters your confidence, and lets you initiate meaningful discussions about the client's needs and goals.
2. Focus on the client
Remember, an interview with a prospective client isn’t about you–it's about the client's desire to solve their problem cost-effectively. Avoid rambling explanations about your expertise. Be concise. Prepare and practice a 10-second synopsis of your expertise and value.
* Come prepared with a series of thoughtful questions aimed at better understanding the client’s needs.
* Listen carefully to the client’s responses to your questions, and respond with your own summary of what you’ve just heard.
* Ask if this is correct, a technique known as "active listening."
* Don’t try to solve the problem now; just make sure you both agree on the issues.
Once you do, now’s the time to discuss your past accomplishments and begin discussing solutions. Since you’ve prepared ahead of time, you’ll have no trouble describing two or three examples of your successes that match your client’s needs.
3. Anticipate objections
Prepare a compelling response for each potential objection the client may have for hiring you. Such objections may include:
* Attractive options proposed by the competition
* Your rates
* Estimated turn-around time
* Internal bureaucracy/resistance
Anticipating objections will help you transform a "no" into a "yes"."
4. Create a sense of urgency
Most companies know that excellence is in high demand. If the prospect seems on the fence about a decision, you can point out that--while you’re excited and eager to work on his project—your other clients are asking for your time, and you’ll need to reserve space for him soon. (Assuming this is true) Make sure you first understand why the prospect is hesitating. If he has undisclosed constraints that put a decision on a longer timeline, he could walk away.
5. Provide an incentive
Many contractors add some financial wiggle room to their bids to protect themselves from unforeseen costs. If your rates are fair, you’re comfortable with a smaller "disaster" cushion, and this client will likely be a good source of contracts in future, you can sometimes cement the sale by offering a small discount on this contract or contracts in future.
** Not sure if you're charging the going rate? Check out our free rate comparison tool **
6. Avoid auctions
Competitive bidding situations are usually a losing proposition for contractors. You either lose the contract or you lose money by steeply discounting your rate.
You can avoid a competitive bidding situation by letting the prospect know—nicely—that you don't bid against other companies or individuals. Instead, stress your value. More experienced consultants are simply more efficient and thus less expensive in the long run.
If your prospect has another, much lower bid, make sure the bid is for an equal level of service, and that the company is a peer in expertise and experience. Ask your prospect to check with references for both sides. Reference checking—which surprisingly few companies do—can often turn around a sale.
7. Keep in touch
Always ask for the contract at the end of the meeting, but don’t expect to get it right then. Instead, ask when the company expects to make a decision. Plan to stay in touch with the prospect with a polite e-mail expressing your eagerness. Then call back weekly until you get a yes or a no. Never take a lack of response as a personal affront or a lack of respect. I’ve seen many contractors make this mistake, firing off nasty missives that burn bridges.
8. Know when to walk away
As with any successful negotiation, have an acceptable fallback or compromise position. For your own long-term happiness and reputation, it's better to walk away from an unfair deal than to accept a gig you perceive as unfair. Ill feelings damage the quality of work and poison your job satisfaction.
If the prospect is unreasonable in the negotiation process, the chances are they'll be unreasonable to work with, too. Sometimes it’s better to move on to more promising opportunities.
http://www.hotgigs.com/marketing/articles/template.cfm?page=winning-new-clients
If winning new clients were easy, gurus wouldn’t be giving $1,000 seminars on the topic, and you wouldn’t see "Dummies" guides to closing a contract deal.
Let’s face it—winning a contract can be one of the most bewildering parts of running your consulting business. It doesn’t have to be such a tremendous dilemma. I’ve worked with hundreds of very successful consultants through the years (and been one myself), and I’ve found that those who flourish take these 8 steps:
1. Prepare to make a great first impression
You never get a second chance to make a first impression, and you make a great first impression by being prepared. Research the company and subject matter, using any available means, including your contacts at the company. Study the company's history, key personnel, current technologies, existing and foreseeable problems and solutions. Preparation bolsters your confidence, and lets you initiate meaningful discussions about the client's needs and goals.
2. Focus on the client
Remember, an interview with a prospective client isn’t about you–it's about the client's desire to solve their problem cost-effectively. Avoid rambling explanations about your expertise. Be concise. Prepare and practice a 10-second synopsis of your expertise and value.
* Come prepared with a series of thoughtful questions aimed at better understanding the client’s needs.
* Listen carefully to the client’s responses to your questions, and respond with your own summary of what you’ve just heard.
* Ask if this is correct, a technique known as "active listening."
* Don’t try to solve the problem now; just make sure you both agree on the issues.
Once you do, now’s the time to discuss your past accomplishments and begin discussing solutions. Since you’ve prepared ahead of time, you’ll have no trouble describing two or three examples of your successes that match your client’s needs.
3. Anticipate objections
Prepare a compelling response for each potential objection the client may have for hiring you. Such objections may include:
* Attractive options proposed by the competition
* Your rates
* Estimated turn-around time
* Internal bureaucracy/resistance
Anticipating objections will help you transform a "no" into a "yes"."
4. Create a sense of urgency
Most companies know that excellence is in high demand. If the prospect seems on the fence about a decision, you can point out that--while you’re excited and eager to work on his project—your other clients are asking for your time, and you’ll need to reserve space for him soon. (Assuming this is true) Make sure you first understand why the prospect is hesitating. If he has undisclosed constraints that put a decision on a longer timeline, he could walk away.
5. Provide an incentive
Many contractors add some financial wiggle room to their bids to protect themselves from unforeseen costs. If your rates are fair, you’re comfortable with a smaller "disaster" cushion, and this client will likely be a good source of contracts in future, you can sometimes cement the sale by offering a small discount on this contract or contracts in future.
** Not sure if you're charging the going rate? Check out our free rate comparison tool **
6. Avoid auctions
Competitive bidding situations are usually a losing proposition for contractors. You either lose the contract or you lose money by steeply discounting your rate.
You can avoid a competitive bidding situation by letting the prospect know—nicely—that you don't bid against other companies or individuals. Instead, stress your value. More experienced consultants are simply more efficient and thus less expensive in the long run.
If your prospect has another, much lower bid, make sure the bid is for an equal level of service, and that the company is a peer in expertise and experience. Ask your prospect to check with references for both sides. Reference checking—which surprisingly few companies do—can often turn around a sale.
7. Keep in touch
Always ask for the contract at the end of the meeting, but don’t expect to get it right then. Instead, ask when the company expects to make a decision. Plan to stay in touch with the prospect with a polite e-mail expressing your eagerness. Then call back weekly until you get a yes or a no. Never take a lack of response as a personal affront or a lack of respect. I’ve seen many contractors make this mistake, firing off nasty missives that burn bridges.
8. Know when to walk away
As with any successful negotiation, have an acceptable fallback or compromise position. For your own long-term happiness and reputation, it's better to walk away from an unfair deal than to accept a gig you perceive as unfair. Ill feelings damage the quality of work and poison your job satisfaction.
If the prospect is unreasonable in the negotiation process, the chances are they'll be unreasonable to work with, too. Sometimes it’s better to move on to more promising opportunities.
http://www.hotgigs.com/marketing/articles/template.cfm?page=winning-new-clients