Most small businesses need cash flow. Revenue has to be continuously flowing in order to pay for expenses, both fixed and variable, inventory, equipment, etc. This is usually tough, especially when you are small and have not built a brand name locally, or a strong web presence. Thus the need to build a substantial pipeline is crucial.
To keep your pipeline full, you must always be adding to it. As one sales closes, you should be adding 20 more to the list. Keeping your pipeline full is a science. It’s a numbers game. However, many companies spin their wheels with these numbers and significantly add more work to themselves by not monitoring both the quantity of their leads and the quality of their leads. To have repeat business, referrals and sound sales transactions, both of these are important.
To get the right leads into your pipeline, you must determine what your target market is. Take a look at your ideal customer and figure out what market segments they fit into. When crossing these segments, you may find a few distribution channels where they intersect. These intersections would be where you market and you “qualify” your leads by checking to make sure they meet 80-100% of your stated criteria.
There are several things to track when trying to figure out what numbers your business can expect. You have to consider what the “right market is,” how many people you speak to in that market, how many times you must speak to them to buy from you. To do this, you must have a tracking system.
Tracking systems are tedious, but necessary. After a few months of tracking your leads, where/how you met them, each time you met/spoke with them, and when/if you closed your sale will help you create a nice formula for your business within a few months. This system also helps you track the clients you converted from leads to customers, helps you cross sell and helps you manage your contacts.