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One key aspect of a successful business is consistently seeking new opportunities. Generating leads in a proactive way will increase selling opportunities and help to keep your order book full.

Mapping your territory

Before you start sourcing leads, decide where you are going to base your search, and in which industries. If your product or service could be widely used, start locally and target particular geographical areas. If you have a niche product or service, focus on specific companies.

How to source new sales leads

There are many ways to find new leads, such as:

• initiated leads - from prospects who fill out a website form, visit your stand at a trade show, or respond to an advertisement or mailshot
• profile fitting - using market research tools to identify potential customers who are likely to be a match for your company's products
• market monitoring - monitoring media outlets, such as news articles, internet forums and corporate press releases
• canvassing - cold-calling in-person, by telephone or by email
• data mining - looking for possible leads in information (for example, a corporate database) that your company has previously gathered
• personal and professional contacts - asking for or incentivising referrals from existing customers, suppliers or acquaintances and through networking
• promotions - using free gifts to encourage potential leads to provide contact information or attend a sales meeting

Qualifying sales leads

Deciding whether a sales lead has the potential is known as qualifying. There are many reasons why some leads may not be successful, including:

• difficulties in meeting the needs of some prospects - their needs may be too great, or expensive
• needs already being satisfied - prospects may have already purchased a similar product
• lack of finance - someone may need a product but be unable to afford it
• prospects lacking authority to approve the purchase 

Using databases to keep track of leads

Storing information on a database allows you to keep track of who you have already contacted and spot patterns where you have been successful. See benefits of databases.

You can also buy a database of business leads from a variety of suppliers. These can be expensive, and you may need to employ staff to help manage them, depending on the size of the list.

Using a CRM system can help you organise leads efficiently, automate follow-ups, and analyse sales performance.

The right person to sell to usually depends on the size of the target business. Purchasing decisions in smaller businesses are often made by the owner or a managing director, but in larger companies, you may need to target several people.

It is worth carrying out some research to ensure you know who to approach before you plan your pitch.

It's generally best to aim as high up the chain as you can, although they may refer you to someone else to talk to first.

There are a number of ways to find the decision-makers in your target business:

• Internet search - the target company's website may have contact details for key members of staff.
• Telephone inquiry - call the business to ask who's responsible for purchasing your particular products or services. Have your sales pitch ready, in case they ask you why you are calling. See telemarketing. 
• Trade press - monitor trade publications that will often include a quote from a senior manager.
• Marketing literature - marketing materials can be a useful source of contact information.
• Trade shows and exhibitions - attend trade events and speak with staff on the stands of your target customers.
• Company records - if they are a limited company, you may be able to find details of the directors on their company stationery or through Companies House.

Before you make contact with the prospect, make sure you know what you are going to say. See how to get sales appointments.

The main purpose of many sales calls is to get an appointment with a potential customer. Making a sales call can be a challenge, and you'll develop this skill through preparation and practice. Group your list of prospects into similar business sectors. This may help you to spot any similarities in their objections, and adjust your approach accordingly.

When making a call, it is normal to have a degree of nerves and it can even help to keep you focused. Standing up and smiling can help you feel, and sound, more confident, positive and in control.

Getting past the gatekeeper

In larger companies, the first person you encounter is unlikely to be the decision-maker. Receptionists, personal assistants, and other employees often shield managers from unwanted sales calls. You can get past this gatekeeper by:

• showing some knowledge of their business
• asking for the key contact by name
• developing a rapport with the gatekeeper
• presenting the prospect with a lost opportunity if they don't assist you

An email or letter may get past the gatekeeper. However, you should follow up, after an appropriate period, with a phone call to check if the right contact has received it.

Effective communication with gatekeepers

Don't try to sell your products or services to the call taker. They may not have sufficient interest in your product or service to convince the decision-maker to respond to your call.

If the decision-maker is not available or you are put through to their voicemail, explain who you are and say you will call back later.

In smaller firms, the owner or other decision-maker may answer the phone so be prepared to launch into your sales pitch straight away. 

Engaging the decision makers

When you get through to the contact, remember that most business people are busy and won't have time to see everyone who calls them. Make sure you quickly establish why they cannot afford to miss out. Pick one key benefit of your products or services and tailor the way you present it to fit that particular customer's needs. See understand your customers' needs.

Dealing with brush-offs

Getting the brush-off is a fact of life for any sales person. The key to success is learning the most common brush-offs and planning in advance how you will handle them.

Here are some examples of common brush-offs and how you might deal with them:

Send me an email.

• No problem. What is it that you're particularly interested in?
• OK. I'll send you some basic information and then I can call you next week to discuss it.

I'll need to think about it.

• Of course. What are your particular concerns?

I'm afraid I haven't got time to speak now.

• That's fine. I'll send you an email following up on our discussion.
• OK. When would be a good time to talk instead?

Sometimes you will get an outright brush-off and the customer will make it clear they are not interested at all. If this happens, try to find out why. It may be that a follow-up call in a few months' time may be better received.

Don't take comments personally and compose yourself before moving on to the next call. You may find that you lose confidence if you receive repeat rejections. 

If the customer sounds interested in what you have got to offer, ask for a meeting to discuss further. Propose a time that's convenient for you and let the customer come back with an alternative if they wish.

The sales meeting is an opportunity to sell your product or service and establish a relationship with your potential client.

Know your customers

Thorough preparation is critical for a high sales conversion rate. If you struggle to answer objections or queries or appear to be underprepared, you will almost certainly lose any potential sale.

Research the client and check their website and any advertising (including recruitment) that they are currently using. Look at other businesses in their industry and who their customers are.

Understand your competitors and what they offer. 

Prepare a list of questions to ask your potential client, and use these to find any potential issues that your product or service could solve.

You can also conduct market research on your customer. See market research and market reports.

Make a good impression 

Before you arrive:

• call the client to check they are still expecting you
• check your travel arrangements
• go through your presentation - make sure it is interesting, relevant and to the point
• check you have all your documentation including a hard copy of your presentation (in case technology fails) and any handouts
• if using presentation technology, check your laptop battery is fully charged and pack any leads and cables

Once you have arrived, you will often be asked to wait in the reception area. This is a good opportunity to make your final preparations:

• switch off your mobile phone
• check your appearance if possible
• make sure your documentation is organised and easily accessible

When your contact appears, stand up and establish eye contact immediately. Introduce yourself and remind them of the name of your business and why you are there. Also, take this opportunity to thank them for their time.

When the meeting starts:

• introduce yourself to any other participants
• ask how business is
• outline the structure and intended length of the meeting, checking they are happy for you to take notes
• tell them that you intend to ask them for their business at the end of the discussion

If you need to set up equipment, eg a laptop, try to maintain the conversation while doing so, to avoid breaking any rapport that has been established.

The presentation

Your presentation should focus on:

• introducing your business and its products or services
• outlining the key benefits of using your business
• addressing any potential objections you think the client might have

It should provide the potential client with an overriding set of reasons to buy your product or services.

While making the presentation, remember that it is just as important to use your listening skills to pick up any useful pieces of information. Have a list of general and specific questions to ask during your presentation. 

Support your arguments with relevant facts and figures, and highlight any existing customer testimonials that you have.

You will begin to sense how the presentation is going by the level of questioning and the client's general demeanour. If they appear to be very interested at this stage, you could move on to the next stage of the sales process. For more information, see negotiate and close the sale.

During the sales meeting, you should try to:

• Find out if the customer has a particular budget for this purchase.
• Identify buying signals - the prospects may repeatedly nod their heads in agreement or have a positive tone to their questions.
• Sell in a 'consultative' way instead of using pressure and hard selling tactics.
• Trade concessions - eg on price or warranties - as opposed to giving them away.
• Close the sale, and if you can't do so, offer to return with a tailored proposal in a few days.
• Be ready to take the order, with the necessary paperwork.
• Remember 'ABC' - Always Be Closing. Once closed, stop selling and leave - you don't have to continue if your customer says "yes" early on in the meeting.

Listening carefully will help you to prepare for questions later on.

Handling and overcoming objections constructively is a critical part of this process.

Try to establish the real reason behind objections:

• clarify what they are unsure of by repeating it back to them
• ask them if they will sign the order if you can overcome the objection
• set out how you can resolve the issue
• modify their expectations if you can't fully resolve the issue

There may be a period of negotiation to agree on the details.

It is tempting to end up in a negotiation on the final cost of the deal, as it is almost certainly one of the elements that the client will try to negotiate on. However, if you have set your price realistically, it is rarely advantageous to compromise on price.

For more information, see price your product or service.

If the client insists on a price reduction, offer to give them a discount based on a larger order or alter some elements of the proposed package.

Whatever happens in the negotiation, remain assertive but polite at all times.

Consider all sensible offers but don't agree to a condition too quickly and if the negotiations break down, outline the sticking point and your final offer to resolve it.

Different closing techniques

If you sense that directly asking for the business won't work, you could try:

• giving them an alternative - eg "Do you want the green or the red one?"
• assuming they will sign - eg "What day is best for us to deliver the goods?"
• the 'conditional' close - eg "If I could satisfy you on this point, could we proceed with this order?"

In all cases, make sure you allow the buyer time to say "yes". If there is a pause after you have tried a closing question, let the potential client speak first.

If you can't close on the day

If you are convinced that the client will not sign an order at the meeting but they still seem interested, offer to return with a tailored proposal. Confirm a date and time for a second meeting - ideally within a few days of the current meeting.

You may decide that the client is not ready to buy and may never be a serious prospect. If this is the case, politely thank them for their time and offer to keep in touch.

Remember, however, to ask them if they know of anyone else who may be interested in your product or service. For more information, see sales follow-up and relationship building.

Once the order has been signed, maintain your professional approach by:

• Confirming what has been agreed, including delivery dates and times as well as payment procedures, where appropriate. 
• Writing down a schedule of the next steps.
• Confirming all the details, including full contact details in case of queries, in an email or letter.
• Making regular progress calls.
• Checking after delivery that they have received exactly what was agreed and on time. For more information, see manage your customer service.

You should regard getting an order as the beginning of a long-term, mutually beneficial business relationship.

Building relationships takes time and is based on trust and providing honest advice. For example, you might advise your client to buy a cheaper product if this will satisfy their requirements, instead of trying to push them to buy the most expensive version.

See retain and grow your customer base.

Request feedback

Another way of establishing a good working relationship is to request honest feedback. This will help you tailor your product or service to your client's needs and will show that you really care about their business.

Increase your knowledge of the market

You should build on the research you conducted before visiting the client, noting any changes in the market and offering to help your client exploit any opportunities.

Referrals and testimonials

Using referrals can reduce the amount of advertising and cold-calling you need to do.

You should ask for referrals when you:

• are sourcing leads
• conclude an unsuccessful sales meeting
• have just agreed a deal with a new client
• are at a networking event
• are contacting an existing client

Ask existing clients for a written testimonial to use in sales appointments. Testimonials should explain why they used your business, how it helped them, and the level of service they received.

Use the following checklist to help you follow the sales process.

Before the sale

• Continually source new sales leads - work on the basis of an expected conversion rate of 5 per cent into actual sales. Use the internet, networking and trade magazines to help with this.
• Approach the sales meeting in a professional manner - be polite but persistent, and highlight the immediate benefits to the client, eg cost-savings or increased productivity.
• Prepare for the meeting - conduct thorough research on the client, their customers and their industry. The more knowledgeable and interested you appear, the more likely the client will be to accept your proposals. Rehearse your presentation and prepare for any potential objections.

During the sales meeting

• Set the tone of the appointment by establishing eye contact immediately and reminding the participants of your name, business name and your product or service.
• Have a list of questions to ask the client - to expose gaps or issues in their business that you could solve. Listen carefully and note down any key points, referring back to them in your presentation.
• Match your product or service to their needs in your presentation - make it relevant, interesting and interactive to keep their attention.
• Handle any objections professionally - they usually indicate that the client wants to find out more, and can be used as a way of closing the sale.

Closing the sale

• Don't be afraid to ask for the business - remember that your product or service will help the client run their business more effectively. If you have exposed and dealt with all their objections, this could be a straightforward procedure.
• Use your negotiation skills to define the limits of any order or contract - accept that you may have to compromise but don't be tempted to undersell your product or service.
• Remember to thank the client for the order - it's not only polite, it can confirm the order.
• Ensure you follow up the sale by keeping in regular contact with the client and dealing with any queries quickly and efficiently.
• Deliver on your promises and then use this as a platform to conduct future business, establishing and building a successful relationship. You should also ask the client for referrals to any of their contacts, and for a testimonial to use in future sales activity.