When do Businesses Spend Money?

If you offer products or services to businesses, it is important to consider how, when, and under what circumstances businesses spend money.

1.  Required by law or by circumstances.  Businesses have to buy the supplies and materials relative to their operation, have to file tax returns, have to compute and pay payroll, and have certain legal, safety, security, and competitive requirements.  These needs provide for attorneys, accountants, consultants, suppliers, and others to sell to them.  Businesses will also spend money if they feel that they must do so in order to be competitive. 

2.  Will save from current expenses.  Typical business expenses include: advertising, payroll, rent, utilities, graphics/printing, internet/social media, communications, travel, equipment, employee benefits, utilities, banking/finance, productivity, and supplies/sources.  If you can offer significant and provable savings from the current amount being spent, with the same level of quality and performance, you opportunity to sell will be enhanced.

3.  Is affordable.  Even the most desirable new expenditure will be postponed if the business can't find a way to put it in the budget.  A business that spends without a budgetary allowance is likely to reach a dead end in its existence.  If you are selling something that your potential clients just can't afford, you may find limited success.

4.  They cannot do it on their own.  If a business can handle the service you offer on their own, or produce your product internally, your market is going to be much smaller.  In the case of Biltmore Franchise Consulting, most businesses cannot create their own franchise program, and that provides an opportunity for us to handle that for them.  Ask yourself: "In your sales presentation are you teaching potential clients enough that they may try to handle your offering on their own?"

5.  They can leverage the cost.  If the business owner or manager believes that by spending money with you, that they can generate a greater amount through sales or savings, they will be more interested, than if your offering seems to be a new budget item or expenditure for them.

You might consider these factors when you offer services and products to businesses, and evaluate your position relative to them.  You may need to make some changes in your sales/marketing approach to better highlight some of these elements that may increase your sales success.

 
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