Intro to Prospect List

 

 

Building a Prospect List

How are you doing building your business? Are you bringing in new projects or clients? Are your profits growing?

One of the keys to expanding is setting up a prospect list. Who are your potential new customers? Most of us make the mistake of thinking we can make a mental note to keep track. We vaguely think about new sources of income, but don't write anything down.

Not systematically tracking prospects is a big mistake.

There are many methods--from using a piece of paper and a pen, to setting up a computer program, to finding a phone app. Sophisticated tracking systems use CRM: Customer Relationship Management. A good CRM program helps automate the process of keeping in touch. If you're in a high volume business that generates tons of leads, you need a portable way to access client data quickly, to be able to remember names and details about potential accounts. Older systems include the little black book and file cards. Newer systems can tap into a range of information and social media that's already publicly available.

Savvy prospectors can follow their potential clients reactions in real time on sites like Facebook and Twitter.

The most important part of a prospect list, however, is your ability to sort and classify any potential business. Are you spending enough time working on the deals which have the best potential to expand your income?

 

Toxic Prospects

I was taught prospecting the old-fashioned "A, B, C" method. I ranked them based on the idea of good, better and best. I don't like this method. If you think back to grade school, anything "C" or higher is passing.

Anyone dealing with prospects should be aware of potential "D" and "F" clients. These are the folks who will waste your time, not appreciate your services, ruin your reputation, haul you into court, damage your morale, and refuse to pay you after your services are rendered. In short, these are toxic prospects.

Avoid or get rid of any toxic prospects.

 

Making a List

The first step in prospecting is to figure out who has been your best source of income already. How many "A" clients do you have? If you have never had any, think about who would be your ideal client. If you could choose anyone in the world, who would be your customer?

Next, who are your "D" and "F" clients? What have been your worst experiences? Were there any red flags that a problem was coming, but you missed it or failed to get rid of the client? What should have warned you to stay away?

Of your remaining business, who fits into "B" or "C"? Why?

Once you've defined what types of clients are both good and toxic for your business, you can then start to rank prospects. You'll want to assign two categories--what they appear to be initially and what their future potential seems to be.

For example, you may be approached by a start-up company. Their current situation is that they have no income, no customer base, and no company history. You'll probably list them as an "F" to start. However, it may be a pair of partners with lots of investment funding and a history of forming successful ventures in the past. Therefore, they may have the potential to go to "C" in the near future. I would argue this would never be an "A" or "B" prospect until they have been in business for awhile.

At the other extreme is a potential client that appears to be an "A". You're ready to start work, but since it's a large account, you decide to call a couple of their vendors before arranging their services. You find out that the company has recently fallen behind on making their payments. This is a red flag that the company could be headed for bankruptcy, which would turn them into an "F". More investigation is needed.

Link to Bankruptcy Indicators

Prospecting

Once your prospecting system is in place, you need to schedule time weekly to go over your potential sources for new income. Make sure you have a systematic way to follow up.