The “Winning Clients, Delivering Value” blog series is based on Vertical IQ’s latest free eBook, The Ultimate Guide for Winning Clients and Delivering Value. In these posts, we will break down 15 of the simplest ways to use financial data and Industry Intelligence from Vertical IQ to improve your prospecting skills, increase your business sales closure rate, and build strong, long-lasting client relationships to enhance client retention.
The role of a consultant for SMBs
The term “consultant” might bring to mind the Bobs in “Office Space” or Alec Baldwin’s famous “A. Always. B. Be. C. Closing.” scene in “Glengarry Glen Ross.” However, for many business owners, bringing in a business consultant can effectively address a temporary need or gap in their bench of talent. Maybe they want to revamp their company’s brand, so they contract with a marketing expert, or perhaps they’re looking to streamline their processes and seek an efficiency consultant.
Why business owners need more than products and services
As you know, business owners — particularly owners of small to medium-sized businesses (SMBs) — are frequently required to wear a variety of hats. They may have to go from handling customer service issues to billing problems to operations challenges, all in the course of one day. And oftentimes, hiring a consultant to carry some of that load just isn’t in the budget.
Herein lies a perfect opportunity for you to solidify yourself as a trusted business advisor to them and their company. Be the ear that listens to these strategic and operational business events and offers them something that only you can – ideas and solutions.
Value goes far beyond price
It’s crucial to understand that for many owners of small to medium-sized businesses, the “value” they are searching for is about far more than your products and services — or potentially even your pricing. For some owners, “value” might be as straightforward as having a person they can turn to and trust when they need business advice — essentially, a pro bono consultant.
- Maybe they want to get a better handle on the competition in the area but don’t have the bandwidth or tools needed to gather that information.
- Perhaps they need help navigating the challenges inherent to an industry but don’t know how to anticipate what might come their way.
- Or it could be they want to grow their business but aren’t sure exactly how or where would be best to expand.
If you’re in a sales or client relationship management role, this might seem like a tall order. After all, “business consultant” isn’t exactly in your job description. And for those of you who call on companies across numerous industries, it might seem even more daunting to think of how you could possibly provide insights that even industry insiders may not be aware of.
Let me wear the consultant hat for a moment and share some helpful pointers with you! As we explore in our latest eBook, The Ultimate Guide for Winning Clients and Delivering Value, meeting these high expectations can be easier than you think when your sales and account management processes leverage actionable, convenient, focused economic data and Industry Intelligence from Vertical IQ.
Forming a consultative partnership that adds value
Vertical IQ enables you to quickly access, digest, and present detailed information and industry insights about your clients’ or prospects’ industries and the economic landscape in which they operate. This helps you position yourself as more than just a banker, an accountant, an insurance agent, etc. It shows you are a business partner – invested in understanding the nuances of their business and ready to guide them to success. Whether you’re advising them on their competition, helping them size up a potential new venture, or counseling them on growing an existing business, Vertical IQ makes your role as easy as A-B-C!
How to position yourself as essential to business owners
Assess the business owner’s local competitive landscape
Having a good handle on the competition and local economic conditions is essential for almost any SMB owner. Even the Small Business Administration advises that a solid competitive analysis is essential for success, noting that SMB owners should “gather demographic information to better understand opportunities and limitations for gaining customers.”
The challenge for most big business or small business owners, of course, is finding the time and resources to assess factors like demand, market size, economic indicators, location, and market saturation. This is a great opportunity to add powerhouse value to the client relationship with the help of Vertical IQ’s Localized Industry Data and Local Economies.
- Utilize local U.S. Census data about their industry to assist business owners in making informed decisions about expansion or contraction based on the number of firms per 100,000 people.
- Share local-level industry data, including the number of business locations, population trends, and local GDP spending.
Be a source for data-informed decision-making
Expanding an existing business or purchasing a new one shouldn’t be a leap; it should be a well-thought-out decision informed by logic and accurate, timely data. Before investing, a would-be business owner should thoroughly understand the industry, including its operations, the latest trends, and, perhaps most importantly, potential risks.
According to the Bureau of Labor Statistics, roughly 1 in 4 new businesses in the U.S. will fail in the first year. Therefore, ensuring your client makes a well-informed business decision before acquiring a business helps safeguard their financial future and may also mitigate your organization’s risk exposure. Vertical IQ’s Industry Profiles simplify pulling and reviewing the latest specs and financial data.
- Both you and the client can gain an unbiased understanding of daily operations and profit drivers, which will help you better analyze possible strengths and business challenges.
- Assess the potential gross and operating margins, the cost of servicing customers, and whether significant economies of scale can be achieved within the industry’s operating model — particularly eye-opening for business owners considering an expansion.
- Analyze business valuation data and industry benchmarks to evaluate the success (or failures) of similar companies within the industry.
Call out savvy expansion opportunities (OR catch risky ones!)
Here again, even business owners with a successful entrepreneurial background shouldn’t simply rely on instinct when it comes to expanding a business. The U.S. Economic Development Administration (EDA) suggests performing a SWOT analysis using trusted third-party data sources to determine a geographic area’s strengths, weaknesses, opportunities, and threats.
Vertical IQ makes it a snap to research the local market for a specific industry, helping ensure that expanding an existing business into a new geographic area will be a sound investment for the owner … and potentially for your business as well. With Vertical IQ’s Localized Industry Data and Local Economies, you can share the exact information crucial to this type of decision.
- Evaluate the potential market size for their industry, including the number of prospective customers in a specific market.
- Determine the flow of money into the local economy and assess the health of the market to which their business sells.
- Analyze the level of competition in the market to understand if it is saturated or if high “headcount” demand justifies additional supply.
- Study industry wage trends and employment patterns over the past decade to gain insights into workforce dynamics.
YOU are the consultative partner your clients have been searching for!
In addition to quality, business owners are also seeking out value in the relationships they form with partner organizations. Whether you’re a sales professional, an account manager, a client relationship manager, or in some other role that works with business owner-clients, you need to showcase your credibility and expertise while offering guidance and solutions tailored to the business owner’s unique needs.
Enhance your sales and client relationship management processes and become the consultative partner that business owners need by tapping into Vertical IQ’s Industry Intelligence. From industry-specific discussions to insightful benchmark financial data to guidance on the local economy and industry competition, Vertical IQ arms you with industry research and economic insights that business owners value!
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>> You can learn more about 15 actionable strategies to use Industry Intelligence to win new relationships and continuously engage your existing business clients. Download Vertical IQ’s newest free eBook, The Ultimate Guide for Winning Clients and Delivering Value!