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 closing rate, and build strong, long-lasting client relationships to improve client retention.
“We need to talk.” Few words strike more fear in a person’s heart. Whether spoken by your partner, boss, or business consultant, these words rarely precede happy news. Frankly, those delivering the messages often find these conversations tough to initiate. After all, no one really wants to be the bearer of less-than-positive news.
Let’s consider this from a different lens. Instead of seeing yourself as the “bearer of bad news,” think of yourself as a hero! You have the potential to play a crucial role in helping business owners navigate business risk, both long—term and short-term. Foretelling challenges empower you to provide more strategic industry insights and bring tailored, business-prescriptive solutions to the table. You become their guiding force toward a more prosperous future.
As discussed in Vertical IQ’s newest eBook, The Ultimate Guide for Winning Clients and Delivering Value, delivering valuable industry insights and financial data from your business to your clients generates a true ROI for you both, even if the industry news isn’t always peachy. A few examples…
Initiate risk conversations
Many large companies or small business owners would rather know what challenges lie ahead so they can properly prepare than be caught off-guard by unforeseen industry issues. Supply chain problems, cyber-attacks, talent management issues, and economic issues concern nearly all business owners. Then there are the more industry-specific issues, like avian flu for egg and dairy producers or tariffs for imported car dealers.
The Industry Intelligence in Vertical IQ makes these conversations easier to initiate. Use Vertical IQ to:
- Learn about the specific industry news and risks commonly experienced by businesses within a particular industry.
- Improve your understanding of external but tangential risks — like economic issues and shifts, natural disasters, and political factors — that are beyond a company’s control and difficult to predict with high accuracy.
- Enhance your due diligence by considering risk factors in industries closely related to your client and their suppliers’ and buyers’ industries.
Cash flow and management
A business’s cash-related challenges exacerbate many risks. One study found that 82% of businesses fail due to cash flow problems. At the same time, research from the National Federation of Independent Businesses (NFIB) highlights cash flow as the second biggest concern for small business management.
Educating yourself on typical revenue streams, profitability markers, and cash flow concerns can give you and the client valuable industry insights into avoiding making a challenging situation worse. For example, if an industry is vulnerable to volatile material costs, a business without the purchasing power in its banking arsenal can be left cash-strapped. This is because the company may not be able to buy materials when costs are low or negotiate a volume discount when prices go up.
Possessing this level of industry insights and expertise strengthens a business owner’s trust and confidence in their partnership with you and can save them from financial setbacks. And it’s simple with Industry Intelligence on Vertical IQ. Use it to:
- Stand out from competitors by gaining a deep understanding of the financial challenges and opportunities unique to each industry—the issues that keep business owners awake at night.
- Learn how cash flows within a typical business in the industry and familiarize yourself with common equipment and capital expenditures. This will give you a clearer picture of potential cash management needs — as well as possible insurance gaps.
- Recognize the financial products and services frequently used within the industry to bring tailored solutions to the table.
Your expertise in a business owner’s unique industry will ultimately strengthen their trust and confidence in you.
Assess the value of a business
Census Bureau data shows that people aged 55 and older own over half of the 33 million small businesses in the U.S. What’s more, a recent report by the Alliance for Lifetime Income estimates that a whopping 4.1 million Americans will turn 65 this year, and every year through 2027 — a phenomenon being called “Peak 65.” Indeed, it’s the most significant influx of retirement-age Americans in our nation’s history.
Although data collected by the Association for Talent Development (ATD) shows that only a third (35%) of organizations have a formal succession plan, with so many soon-to-be retirees, many businesses will be changing hands.
This is yet another opportunity for you to initiate a sometimes difficult conversation: What will happen to their most prized possession, their business? Will it close, go to their kids or other family members, be absorbed by employees, or be sold on the market? Having a succession plan and gaining insights into the value of the business today helps to skirt issues in the future.
For instance, if a business owner is going to sell, it is wise to ensure the business is in the best possible financial and strategic position. This will increase its overall value and appeal to prospective buyers. (After all, no one wants to buy a business where the owner has mismanaged financial risk!)
Looking at Vertical IQ’s financial data and industry insights accurately assesses a business’s current health. A business outperforming peers earns the right to ask top dollar or use the highest business valuation multiple to determine potential value. This type of Industry Intelligence also allows you and your client to:
- Have meaningful discussions about the need for key person life insurance.
- Employers should inform their employees about the value of stock options and/or encourage them to purchase additional shares at a fair price.
- Present a comprehensive and well-documented proposal to potential investors or buyers.
- Collaboratively develop strategic plans while anticipating future property succession and inheritance needs.
A consultative partner your client can rely on
There’s no sugarcoating it: There are times in life when we DO “need to talk”—when we need someone to tell us what we may not want to hear.
Hearing difficult or less-than-uplifting information can be especially difficult for business owners. Their business is their baby; they’ve likely sunk their blood, sweat, and tears into it. In the end, straightforward insights give owners the information they need to protect themselves and their beloved businesses.
By using Industry Intelligence from Vertical IQ to inform client discussions about challenges like risk, cash flow, and business valuation — and then offering guidance and solutions tailored to those topics — you can be the credible, trustworthy partner your client needs.
Strengthen your sales and client relationship management processes with access to industry-specific content, equipping you and your team with the knowledge that business owners truly appreciate and value. Check out Vertical IQ pricing here.
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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!