Risks in sales – Economic Factors 

 

Risk: Economic factors. 

 

Unless your solution is required to meet government mandates or industry compliance, the purchase of your solution is an optional expenditure, so the state of the economy presents significant hazards.

 

A downturn in the economy could cause a company to slow down or halt spending on all initiatives. A company missing their quarterly or annual results, could leave their stock price reeling and their executives could batten down the hatches in an effort to appease financial analysts. 

 

A company announcing cutbacks by laying off staff or closing facilities could be a pre-cursor to a freeze on spending for things that are not important to “keep the lights on”.

 

On the flip side, even when the economy is soaring, some companies that are performing very well and enjoying smooth sailing might not want to rock the boat, so they could choose to avoid the risks associated with any new initiatives. 

 

A few years ago, I was working with a customer to close a “two comma deal”, in other words, a seven-figure opportunity. A couple of days before our planned contract signing, the financial world blew up as breaking stories about a potentially-catastrophic banking crisis hit the news media. 

 

During these times it is even more important to sell the value of your solution and why the customer should act now. 

 

I stayed in close communication with the customer, even camping out in their lobby to ensure that any issue would be handled quickly. 

 

We won that two-comma deal by engaging even more closely with the customer… by reinforcing the value, emphasizing the risk and the cost of delay, and clearing any financial roadblocks that remained. 

 

A great celebration ensued. Here’s to beating that risk. 

 

I’m DJ Sebastian, and we’ll continue our discussion on the risks of a sales career in the next briefing. 

 

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